Answer to Question #71585 in Economics of Enterprise for tamera

Question

visit any local store that sells goods on credit

Answer 1

sales to customers may directly (by the vendor offering credit) or indirectly (through a bank or credit card company) entail the extension of credit. While the availability of credit facilitates many business transactions, it is also costly.
Reference:
https://www.principlesofaccounting.com/chapter-7/selling-on-credit/