wheather credit will be useful or not depends upon the situation give 2 different example in support this statement
Answers
The examples are based on the risks in the situation and whether there is some support in case of loss.
The examples are
(i) A manufacturer taking credit for supplying goods in the festival season usually has low risk, as the products are most likely to be sold completely.
(ii) A small farmer taking credit for crops has larger risks in case of crop failure. His only support in case of loss is the land, which he has to sell.
Thus, it can be concluded that usefulness of credit depends on the situation
Explanation:
The examples are based on the risks in the
situation and whether there is some support
in case of loss.
The examples are
(i) A manufacturer taking credit for supplying
goods in the festival season usually has low
risk, as the products are most likely to be
sold completely.
(ii) A small farmer taking credit for crops has
larger risks in case of crop failure. His only
support in case of loss is the land, which he
has to sell.
Thus, it can be concluded that usefulness of
credit depends on the situation