The Stages in the Life of a Transaction Exposure Can

question 18

Multiple Choice

The stages in the life of a transaction exposure can be broken into three distinct time periods. The first time period is the time between quoting a price and reaching an actual sale agreement or contract. The next time period is the time lag between taking an order and actually filling or delivering it. Finally, the time it takes to get paid after delivering the product. In order, these stages of transaction exposure may be identified as:

• A) backlog, quotation, and billing exposure.
• B) billing, backlog, and quotation exposure.
• C) quotation, backlog, and billing exposure.
• D) quotation, billing, and backlog exposure.

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Definitions:

ROI

ROI, or Return on Investment, measures the efficiency or profitability of an investment by dividing the net profit from the investment by the initial cost of the investment, typically expressed as a percentage.

Residual Income

The income that an entity generates after accounting for all operational and capital expenses, often used to assess the profitability of investment centers within a business.

Return on Investment

A measure of the profitability of an investment, calculated as the ratio of net profits to the initial cost of the investment.

Investment Decisions

The process of making choices about where to allocate resources and capital in order to achieve the highest returns.