Solved

Scenario 2

question 42

Multiple Choice

Scenario 2.2 Use the following to answer the questions.EXperience Limited is a company which offers tours and vacations that include participation in an extreme sport, such as hang-gliding, bungee jumping, skydiving, and motocross. Adrian Moss, EXperience Limited's owner, has just finished developing the strategic plan, including marketing objective of growing his customer base by 15% during the coming year. He believes that the best way of reaching that objective is to promote to the college-aged student. In the past, the majority of his sales have been to males under the age of 29, participating in hang-gliding and bungee jumping at various tourist locations. He wants to expand his skydiving and motocross tours, but isn't sure whether or not the expansion will be profitable. He currently has a database containing all the customers who have gone on a hang-gliding or bungee jumping vacation with his company.
-Refer to Scenario 2.2. The fact that college enrollments have been increasing at a fast rate the past few years is an example of ____ and creates a ____ for EXperience Limited.

Definitions:

Aging

A process or method used to categorize accounts receivable based on their time outstanding.

Receivables Growth Rate

The rate at which a company's accounts receivable balance is increasing over a specific period, indicating the speed of cash inflow acceleration.

Sales Data

Information and records related to the quantity, price, and terms of sales transactions made by a company.

Sale of Receivables with Recourse

A financial transaction where a company sells its receivables to another party but remains liable if the party owing the receivables fails to pay.