A Wholly-Owned Subsidiary That Handles the Credit Function for the Parent

question 193

Multiple Choice

A wholly-owned subsidiary that handles the credit function for the parent firm is called a(n) :

• A) Controlled disbursements company.
• B) Junior subsidiary firm.
• C) Parallel payments firm.
• D) Captive finance company.
• E) Operating division.

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Definitions:

Expected Rate

The anticipated yield or return on an investment, loan, or other financial products over a specific period.

Standard Deviation

A measure of the dispersion or variation in a set of values, indicating how much the values differ from the mean.

Risk-Free Asset

An investment with a guaranteed return and no chance of default, often used as a benchmark for the risk level of other investments.

Standard Deviation

A statistical measure that quantifies the amount of variability or dispersion of a set of data points or distribution from the mean.