Credit Transactions in Commerce:

Credit transactions in commerce are common where goods are purchased on credit. This means that the buyer receives the goods immediately but pays for them at a later date. In these transactions, there are two parties involved, the buyer and the seller. The person who sells the goods on credit is known as the creditor, and the person who purchases the goods on credit is known as the debtor.

Explanation:

The correct answer to the given question is option 'A' which states that the person from whom goods are purchased on credit is known as a creditor. This is because the creditor is the one who sells the goods on credit and allows the debtor to pay for them at a later date.

The term creditor is derived from the Latin word 'credere' which means 'to believe'. This indicates that the creditor believes in the debtor's ability to pay for the goods at a later date. The creditor takes a risk by selling goods on credit as there is a possibility that the debtor may default on payment.

In credit transactions, the creditor provides a credit period to the debtor within which the payment must be made. The credit period can vary depending on the agreement between the parties. The creditor may also charge interest on the amount due if the payment is not made within the credit period.

Conclusion:

In summary, the person from whom goods are purchased on credit is known as a creditor. The creditor sells the goods on credit and provides a credit period to the debtor within which the payment must be made. The creditor takes a risk by selling goods on credit and may charge interest on the amount due if the payment is not made within the credit period.