Nonmerchant Companies

question 93

Multiple Choice

Nonmerchant companies

• A) usually don't need ERP applications.
• B) engage in disintermediation.
• C) arrange the sale of goods without actually owning the goods.
• D) sell services they own.
• E) do not deal with the public.

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Definitions:

Low Coupon Bond

A bond that pays interest at a lower rate than the market rate, typically resulting in its selling at a discount to face value.

Interest Rates

The rate at which a borrower pays interest to a lender for borrowing money.

Coupon Payments

Regular interest payments made to bondholders during the lifetime of the bond.

Floating Rate Bonds

Bonds with interest rates that adjust periodically based on a reference rate.