Which of the Following Is the Best Definition of a Captive

question 335

Multiple Choice

Which of the following is the best definition of a captive finance company.

• A) A compilation of accounts receivable by the age of each account.
• B) Wholly owned subsidiary that handles credit extension and receivables financing through commercial paper.
• C) A discount given for a cash purchase.
• D) Procedures followed by a firm in collecting accounts receivable.
• E) Conditions on which a firm sells its goods and services for cash or credit.

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Definitions:

Low-Fat Diet

A dietary approach that reduces the intake of fat, especially saturated fat and cholesterol, to promote heart health and possibly aid in weight loss.

Control Group

A control group is a group in an experiment that does not receive the experimental treatment, allowing researchers to measure the effect of the treatment by comparison.

Extraneous Variables

Factors other than the independent variable that can affect the outcome of an experiment and need to be controlled.

Experimental Group

The group in an experiment that receives the treatment or intervention under study to investigate its effects.