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.

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Definitions:

Certainty

A condition where there is complete absence of doubt or the total confidence in something.

Fully Informed

Indicates a state where all necessary information has been received and understood.

Major Decision Making

The process of choosing between significant options or paths, often having considerable impact on an individual's or organization's future.

Direct Control

A management approach that involves explicitly regulating process, decisions, and actions within an organization to ensure compliance and achieve objectives.