A Mercantile Credit Bureau Serves Primarily as a (N)

question 55

Multiple Choice

A mercantile credit bureau serves primarily as a (n) :

• A) collection agency for delinquent accounts
• B) common meeting place where credit managers may exchange information
• C) organization through which accounts receivable may be sold to other businesses
• D) central record-keeping organization for credit information on business

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Definitions:

Discount Rate

A rate used to determine the present value of future cash flows, reflecting the time value of money and risk of the cash flows.

Profitability Index

A calculation that determines the relative profitability of an investment, indicating the value created per unit of investment.

Cash Inflows

Funds that enter a business, resulting from sales, financing, or investment returns, contributing to the company's cash balance.

Payback

the period of time required for an investment to generate funds to recover its initial outlay.