Hire purchase is beneficial to the seller because?
Answer Details
Hire purchase is beneficial to the seller because it increases his turnover. With hire purchase, the seller can sell more goods to customers who may not be able to afford to pay the full price upfront. The customers can pay for the goods in instalments over a period of time, which increases the likelihood of them making a purchase. This, in turn, boosts the seller's turnover and helps to increase his profits. The other options listed are not accurate, as hire purchase does not directly enhance the seller's living standard, and while people do pay instalmentally, this is not necessarily a benefit to the seller beyond increased turnover. The seller may also enjoy patronage, but this is not directly related to the benefits of hire purchase.