In the Initial Stage (Stage I),the Corporation

question 19

Multiple Choice

In the initial stage (Stage I) ,the corporation:

• A) has a product yet to be accepted in the marketplace.
• B) anticipates slow growth in sales and earnings.
• C) needs a stable growth rate similar to the economy as a whole.
• D) the firm has numerous projects that add value.

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Definitions:

Promissory Note

A promissory note is a financial instrument in which one party promises in writing to pay a determinate sum of money to another, either at a fixed or determinable future time or on demand of the payee.

Time Draft

A type of credit instrument in international trade where payment is deferred for a specified period after the buyer accepts the draft.

Banker's Acceptance

A short-term financial instrument issued by a company but guaranteed by a bank, commonly used in international trade.

Cash Discount

A reduction in the invoice price offered by a seller to encourage early payment by the buyer.