A Major Concern for Firms Selling on Credit Is

question 122

Multiple Choice

A major concern for firms selling on credit is:

• A)the inability to utilize factoring as a source of financing.
• B)the resulting increase in the debt ratio for the firm.
• C)the realization that many credit customers never pay their bills.
• D)not all firms accept credit cards.

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Definitions:

Profitability Ratios

Metrics used to assess a business's ability to generate earnings relative to its revenue, assets, equity, or other financial metrics over a specific period.

Mint.com

A free, web-based personal financial management service for the US and Canada, which helps users track their spending and manage their budget.

Personal Finances

The management of an individual's money and financial decisions, including budgeting, investing, and planning for the future.

Cash Inflows

The total amount of money being transferred into a business, from sales, investments, or financing activities.