Yesterdays class on financial management had a topic of Credit Sales. Among the lecture there came a question from the instructor, Is it a must to have credit sales?
The answer came as yes on which he said, it is not important, look at the hotel industry and the eateries, they don’t do credit.One boy said, yes they do.
Upon which the instructor disagreed. The instructor said that food given does not account for credit sales.
Maybe he isn’t aware of the volume of the credit lent by these small businesses on which they thrive.A marketplace area will have it’s workers going on to the eatery in their locality and will make payments end of the month when they get their salaries. I myself have seen records being kept during the night by runners of a small cafeteria . Isn’t it “business” what the cafeteria owners are doing, isn’t the food items eaten by the consumers and not paid by them, recorded by the owners of the cafeteria, come under the category of credit sales?
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