Which Three of the Following Properties Best Describe the Investment

question 9

Multiple Choice

Which three of the following properties best describe the investment characteristics of ultimate borrowers (businesses) ?

• A) Large amounts.
• B) High search costs.
• C) High risk.
• D) Low liquidity.

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Definitions:

Receivables Period

The amount of time it takes for a company to collect payments owed by its customers after a sale has been made, typically measured in days.

Inventory

The goods and materials a business holds for the ultimate goal of resale or production.

Cost of Goods Sold

Material and labor costs that are directly attributable to the manufacturing of a company’s products.

Sales

In the context of business, sales refer to the transactions and activities involved in selling goods or services to customers, often measured in terms of the total revenue generated.