Respuesta :
The statement "Many retail companies are motivated to incur credit costs because many customers are emotional buyers and offering credit generally leads to increases in sales revenue" is True.
Credit sales are also known as buying "on finance".
It involves a client agreeing to pay back the cost of a good they've purchased over a lengthy period of time.
Although many businesses provide interest-free periods, especially at the beginning of the arrangement, this sometimes entails paying interest for the time it takes to return the whole amount owed.
Even when the entire sum is not paid up in advance, the consumer nevertheless acquires legal ownership of the items at the time the contract is signed.
If a business gives clients credit and there are no conditions attached, the customers are free to pay the bill whenever they want, which could be never.
Sellers typically have credit sales conditions that specify when the debt will be due for payment, a discount duration, and a discount in order to reduce such undesirable situations.
Hence, where many retail companies are motivated to incur credit costs because many customers are emotional buyers, and offering credit generally leads to increases in sales revenue.
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