Which of the Following Is Not a Common Settlement Option

question 26

Multiple Choice

Which of the following is not a common settlement option?

• A)life income option.
• B)limited installment payment.
• C)lump-sum payment.
• D)variable installment payment.
• E)proceeds left with the company.

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Definitions:

Cash Discount

is a reduction in the invoice amount offered to purchasers as an incentive for early payment, improving cash flow.

Interest Rate

The percentage at which interest is paid by a borrower for the use of money that they borrow from a lender.

Gross Amount

The total sum before any deductions are made, such as taxes, discounts, or expenses.

Price Escalation

An increase in the price of products or services over time, often due to factors such as inflation or increased costs of materials.