One Key Advantage of Offering Credit Is

question 4

Multiple Choice

One key advantage of offering credit is:

• A) interest on overdue accounts is a major source of income.
• B) it is a social responsibility to operate a business.
• C) it results in increased sales.
• D) it creates sales volume which can then be used to borrow more funds from a bank.

Understand the concept of Net Present Value (NPV) and its application in evaluating investment projects.

Calculate cash flows associated with an investment, including salvage values, working capital changes, and operational inflows.

Apply discount rates to cash flows to determine the present value in capital budgeting.

Understand and calculate the payback period for an investment.

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Definitions:

Performance Measures

Metrics and indicators used to evaluate and assess the effectiveness, efficiency, and success of an organization's activities and employees.

Planning And Control System

A framework used by organizations to align their strategic objectives with practical actions, monitor performance, and manage resources.

Flatter Structure

This refers to an organizational design with fewer layers of management and a wider span of control, aimed at improving communication and decision-making efficiency.

Levels Of Management

The hierarchy of authority within an organization, classifying the different layers of management from top to operational level.