Which of the Following Is a Credit Management Decision

question 110

Multiple Choice

Which of the following is a credit management decision?

• A) Purchasing a used car with cash
• B) Investing your savings in the stock market
• C) Obtaining a student loan to attend college
• D) Putting money into your retirement account

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Definitions:

Assurance of Future Profits

A form of guarantee or promise that endeavors to ensure or secure profit generation in future business activities.

Budgeting

The process of creating a plan to spend your money over a certain period, outlining projected income and expenses.

Continuous Budgeting

A budgeting approach that continuously updates the budget by adding a new period (month, quarter, etc.) as the current period is completed.

Annual Period

A 12-month time frame over which a business's financial performance is evaluated, which does not necessarily align with the calendar year.