It May Be Possible for Firms to Reduce the Time

question 70

Multiple Choice

It may be possible for firms to reduce the time and expense necessary to collect delinquent debts under a(n) :

• A)Promissory note
• B)Conditional sale
• C)Open account
• D)EOM billing

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Definitions:

Collection Time

The typical period a business waits to receive money owed by its customers.

Weekly Disbursements

The total amount of money a business pays out in a week, covering expenses such as salaries, supplier payments, and other operational costs.

Opportunity Cost

The cost of foregoing the next best alternative when making a decision. It represents the benefits an individual, investor, or business misses out on when choosing one alternative over another.

BAT Model

Stands for the Behavioral Adjustment Target model, which is a concept in finance that deals with the adjustments investors make based on behavioral economics principles.