Non- payment of debts on time results in 1 ) Higher interest cost 2) loss of goodwill 3) fines and penalties 4) All the above
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It results in 4) All of these
- Paying of a dues refers to the method of repaying a loaned amount. It is essential for an individual or an enterprise to pay their debt on time as an unsuccessful payments will lead to negative results.
- These include -
1. The more the time is taken for repayment the higher the interest rate will go.
2. Unable to pay the dues showcases the financial stability of an enterprise, which in turn makes them lose the goodwill.
3. Dependent on the source of debt, the enterprise can be subjected to fines and penalties as well.
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