Examlex
An SBU structure consists of at least three levels: the top level, the corporate headquarters; the next level, the strategic business units (SBUs); and the final level, SBU divisions.
Selling Receivables
The process of selling a company's outstanding invoices to a third party to improve cash flow and reduce risk.
Risk
The possibility of experiencing loss or other adverse effects in business or investment.
Allowance Method
An accounting technique to estimate and record bad debts by recognizing a provision for accounts receivable that might not be collected.
Bad Debt Expense
An expense recorded by businesses to reflect irrecoverable amounts owed by customers, considered an unavoidable cost of extending credit.
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