In basic business and commerce, what does it mean to buy goods on credit from a shop or supplier?

Introduction / Context:
In everyday business and commerce, people frequently hear phrases such as buying on credit or purchasing goods on credit. This general knowledge question checks whether you understand what buying on credit really means in practical terms. The idea of credit is central to personal finance, retail trade and banking, and it appears in many competitive examinations because it affects how consumers, shopkeepers and companies manage money.

Given Data / Assumptions:

Buying goods on credit refers to a normal retail or business transaction.
The customer receives the goods immediately from the seller.
The customer does not pay the full amount in cash at the time of purchase.
The seller agrees to receive payment after some agreed period, for example after thirty days.
No special mention is made of discounts, gifts or price reductions in the basic definition of credit.

Concept / Approach:
The key idea behind credit is time. When you buy on credit, you separate the moment you receive the goods from the moment you pay for them. The seller extends trust that you will pay later, and this trust is the credit. The price of the goods remains the same unless there is a separate agreement about interest or discounts. Therefore, the correct option must capture the idea receive now, pay later, without wrongly adding details about discounts or gifts that are not part of the basic definition.

Step-by-Step Solution:
Step 1: Focus on the phrase buy goods on credit and recall that it means payment is postponed to a future date.Step 2: Check option A, which clearly states that the buyer promises to pay later while taking the goods now. This matches the standard textbook definition of buying on credit.Step 3: Examine option B, which talks about paying only a discounted price and treating the remaining amount as a gift. This changes the meaning and makes it more like a special offer, not a credit transaction.Step 4: Examine option C, which limits payment to a sale price and ignores the original price. This again describes a discount or sale and not the essential idea of credit.Step 5: Examine option D, which describes paying cash immediately. That is the opposite of buying on credit, because there is no delay in payment.

Verification / Alternative check:
You can verify the answer by thinking of how credit cards and store credit work. When you swipe a credit card or sign for goods on a credit account, you get the product today but the bill is due later. You still owe the full amount unless there is a separate discount scheme. This everyday example confirms that the correct interpretation is receiving goods now with an obligation to pay in the future, which is exactly what option A describes.

Why Other Options Are Wrong:
Option B is wrong because a discount is a reduction in price and not the same as credit. You can buy at a discount and still pay immediately in cash. Credit is about timing of payment, not whether there is a discount.
Option C is wrong because it again focuses on sale price and ignoring the original price. Sales and promotions do not automatically involve credit; they simply lower the amount you pay now.
Option D is wrong because paying cash for goods at the time of purchase is the standard cash transaction, not a credit purchase. There is no delayed payment and therefore no extension of credit from the seller.

Common Pitfalls:
A common mistake is to confuse credit with discount and to think that buying on credit always means paying less. In reality, some credit purchases may even cost more because of interest or late fees. Another pitfall is to assume that any non cash transaction, such as using a debit card, is credit, but debit payments usually transfer money immediately. Remember that the core idea is promise to pay later, not pay less or pay in a different way.

Final Answer:
The correct answer is Promise to pay for the goods at a later date while taking them home now. This option directly captures the essential definition of buying goods on credit in business and everyday life.