Which one of the following factors tends to favour longer credit periods?

A) High consumer demand.
B) Lower priced merchandise.
C) Increased credit risk.
D) Merchandise with low collateral value.
E) Increased competition.

Increased competition often leads to businesses offering longer credit periods as a way to attract or retain customers. This is because, in a highly competitive market, companies look for ways to differentiate themselves and make their offerings more attractive. Offering longer credit periods can be an effective strategy to encourage sales and customer loyalty.