Which of the Following Would Be Most Commonly Used for Intermediate-Term

question 14

Multiple Choice

Which of the following would be most commonly used for intermediate-term financing?

• A)insurance companies
• B)trade credit
• C)finance companies
• D)leasing companies

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Definitions:

Retained Earnings

Cumulative net earnings or profit of a firm after accounting for dividends; they are reinvested in the core business or to pay debt.

Net Income

The net income of a company once all costs and taxes are deducted from the overall revenue.

Fixed Assets

Long-term tangible assets used in operations, such as machinery, buildings, and equipment, which are not expected to be converted into cash in the short term.

Sales Capacity

The maximum level of sales that a company can achieve within a given period under normal operating conditions.