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By pooling cash resources centrally, firms can
Retained Earnings
The portion of a company's profits not distributed to shareholders as dividends but retained for reinvestment in the business or to pay off debt.
Amortized Cost Basis
An accounting method that gradually writes off the initial cost of an asset over a period, which reflects its consumption or use over time.
Credit Loss
Credit Loss is the loss incurred by a lender when a borrower fails to repay a loan, and the recoverable amount is less than the outstanding balance.
Effective Interest Rate
The real cost of borrowing, taking into account the effects of compounding interest.
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