Harlan's Customers Have Been a Little Slow in Paying Their

question 20

Multiple Choice

Harlan's customers have been a little slow in paying their invoices, and he is short on cash to pay his quarterly taxes. Harlan should consider

• A) sending the late payers to a collection agency.
• B) factoring.
• C) putting his late payers on credit hold until they pay up.
• D) taking out a personal loan to pay the taxes.

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Definitions:

Year 2

A term often used in finance and accounting to denote the second year of operations, analysis, or reporting period being considered.

Earnings Per Share

A measure of a company's profitability that calculates how much of the net income is available per share of stock.

Year 2

Refers to the second year of a particular time frame, often used in financial analysis to denote the second year of operations, investments, or accounting periods.

Price-Earnings Ratio

A valuation metric comparing the current share price of a company to its per-share earnings.