Ryan Was Called by One of His Regular Customers Asking

question 280

Multiple Choice

Ryan was called by one of his regular customers asking if he had time to repair some broken sprinkler heads on that customer's underground sprinkling system. Although it was already 6:00 p.m. and he already put in a full day of work, he turned his car around and headed for the customer's house. As a small business owner, Ryan demonstrates

• A) his need for additional cash flow.
• B) his ability to easily adapt and respond to his customer's needs.
• C) the fact that it is difficult to find employees willing to go the extra mile for a small business because benefits are nonexistent.
• D) that considering the fact that sprinkler heads are constantly breaking and need repair, his service is overpriced.

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Definitions:

Maturity Date

The specified date on which the final payment of a loan, bond, or other financial instrument is due to be paid.

Note Receivable

A written promise that a customer will pay a fixed amount of money with interest by a certain date.

Interest

The charge for borrowing money or the compensation for lending money, typically calculated as a percentage of the principal amount.

Note Receivable

A promissory note held by the lender, stating the money due to be paid back by the debtor.