When offering credit to customers, which outcome is least likely?

When businesses offer credit to customers, the primary intention is often to increase sales by making it easier for customers to purchase products or services. The assumption here is that by allowing customers the flexibility to pay later, businesses can actually enhance their sales volume rather than decrease it.

Sales may decrease if a business does not offer credit; however, when credit is extended, it typically enables customers who might not have sufficient funds at the moment to still make a purchase. Therefore, it is least likely that offering credit will lead to a decrease in sales.

In contrast, the other outcomes reflect common challenges associated with extending credit. Some customers may indeed default on payments, leading to bad debt. Managing accounts receivable can incur additional costs, including administrative work and monitoring of those credits. Additionally, if many customers delay payment, businesses can face cash flow issues since they rely on timely payments to meet their own financial obligations. These aspects are realistic outcomes of extending credit, while a decrease in sales is less likely to occur if the credit is managed effectively.