If a Company Has a Signed Purchase Order from a Creditworthy

question 136

True/False

If a company has a signed purchase order from a creditworthy customer and the gross profit margin on the order is anticipated to be 36 percent, purchase-order financing is likely.

---

Definitions:

Shares

Units of ownership interest in a corporation or financial asset, providing a share in the company's profits and losses.

Geometric Average Returns

A method of calculating the average rate of return of a set of values that accounts for the effects of compounding, useful for assessing the performance of investments over time.

Returns

The profits or losses generated by an investment over a specific period, often expressed as a percentage of the initial investment cost.

Years

Units of time representing a period of twelve months or 365 days, used as a measure of time passing.