Question

What was the company’s sales policy?

• A. Selling on credit only
• B. Selling only for cash
• C. Selling on both cash & credit
• D. Selling online only

Hint:

Flexibility in payment options can increase customer access and help businesses stay competitive in a changing market.

Answer 1

The Correct Option is B

Step 1: Understanding the sales policy.
The case clearly mentions that Super Fine Rice Ltd.'s policy was to sell rice only for cash. This is why the company’s position in the market was challenged when competitors began offering credit sales.
Step 2: The impact of this policy.
Selling only for cash limited the company’s customer base, as it was less flexible compared to competitors who offered more payment options.
Step 3: Conclusion.
The sales policy of selling only for cash is the correct answer, as stated in the case.