You are the owner of a small grocery store.

1. What are the pros and cons of selling your merchandise to your customers on credit?  Would you sell items to your customers on credit?

2.  Regardless of your answer to Question as to whether or not you would extend credit to your customers, pretend that you will extend credit to your customers.  Now, answer the questions.  Who would you give credit to? 

 How much credit would you give?