One drawback of offering liberal credit to customers is that it ...

[Wadzanai]

One drawback of offering liberal credit to customers is that it can:
 A) delay the sales to a future period.
  B) increase the cost of credit to customers.
  C) delay the receipt of cash that the firm needs to meet its financial obligations.
  D) decrease sales by the extension of credit and cause a loss to the company.

Question 2

Shareholders of an S-corporation are taxed as if they were owners in a partnership.
 
 Indicate whether the statement is true or false

[jesse.fleming]

Answer to Question 1

C

Answer to Question 2

True