The granting of credit is critical because it is the first point in the cycle at which company assets are given up.

Question

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The granting of credit involves allowing customers to take possession of goods or services without immediately paying for them, which means that the company is essentially extending credit to its customers. This represents a transfer of assets from the company to the customer, and it is therefore the first point in the cycle at which company assets are given up. As a result, the granting of credit is a critical decision that can have significant implications for a company's financial health and profitability.

The Granting of Credit Is Critical Because It Is the First