What Term Best Describes the Payment Which Must Be Offered

question 6

Multiple Choice

What term best describes the payment which must be offered to a risk-averse individual to willingly accept a gamble?

• A)Certainty equivalent
• B)Risk equivalent
• C)Risk premium
• D)Risk preference payment
• E)Certainty payment

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Definitions:

Receivables Period

The median days a company waits to receive money owed by customers for goods or services delivered on credit.

Payables Period

The payables period is a financial metric that indicates the average time it takes for a company to pay its suppliers and vendors.

Accounts Payable Balance

The total amount of money a company owes to its suppliers or vendors for products and services purchased on credit.

Disbursement To Suppliers

The payment made by a company to its suppliers for goods or services received.