Match the Following Definitions with Their Appropriate Terms

question 79

Multiple Choice

Match the following definitions with their appropriate terms .
-Equity securities

• A)A liability resulting from the signing of a
• B)A measure of how long it takes to collect receivables. promissory note.
• C)A written promise to repay a definite sum of
• D)The length of time a note is outstanding, that is, the money on demand or at a fixed or determinable period of time between the date it is issued and the date date in the future. it matures.
• E)The party that will receive the money from a
• F)The process of selling a promissory note. promissory note at some future date.
• G)The date the promissory note is due.
• H)The amount of cash the maker is to pay the payee on the maturity date of the note.
• I)The difference between the principal amount of
• J)An asset resulting from the acceptance of a promissory the note and its maturity value. note from another company.
• K)Securities issued by corporations and
• L)Securities issued by corporations as a form of ownership governmental bodies as a form of borrowing. in the business.
• M)The party that agrees to repay the money for a
• N)The amount of cash received, or the fair value of the promissory note at some future date. products or services received, by the maker when a promissory note is issued.

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Definitions:

Incentive

A form of motivation typically used in a business context to encourage desired behaviors or actions among employees or customers, often through rewards or perks.

Financial Intermediaries

Institutions that act as middlemen in financial markets, facilitating transactions between borrowers and lenders or investors.

Credit Risk

The risk that a borrower may default on any type of debt by failing to make required payments.

Diversify

A risk management strategy that mixes a wide variety of investments within a portfolio to minimize the impact of any single investment's poor performance.