As a Result of Conducting a Gap Analysis, a Potential

question 46

Multiple Choice

As a result of conducting a gap analysis, a potential entrepreneur proved there was a need for the business.This is known as

• A)operational financing.
• B)performing a due diligence analysis.
• C)formulating a basic market plan.
• D)generating potential business ideas.

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Definitions:

Cash Collection

The process of gathering and managing payments received from customers.

Discount Period

The period between the issuance of a bill, note, or bond and its maturity date, during which it may be purchased at a reduced price to yield interest upon redemption at full price.

Receivables Turnover Ratio

A financial metric that measures how efficiently a company collects its outstanding receivables over a period, calculated as sales divided by average accounts receivable.

Uncollectible Account

Accounts receivable that are deemed irrecoverable and are written off as a loss because the debtor is unable to pay.