Which of the Following Is the Best Definition of a Captive

question 331

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:

Minor Term

In logic, specifically in syllogisms, the term that is the subject of the conclusion.

Syllogism

A form of deductive reasoning consisting of a major premise, a minor premise, and a conclusion, often structured in categorical logic.

Whales

Large marine mammals belonging to the cetacean family, known for their intelligence and often extreme size.

Minor Premise

The second premise in a syllogism, which provides a specific instance that is related to the general assertion made by the major premise.