A Supplier,who Requires Payment Within Ten Days,is Most Concerned with Which

question 67

Multiple Choice

A supplier,who requires payment within ten days,is most concerned with which one of the following ratios when granting credit?

• A) current
• B) cash
• C) debt-equity
• D) quick
• E) total debt

---

Definitions:

Unsystematic Risk

The risk associated with a specific issuer of a security or investment, which can be mitigated through diversification.

Diversification

A risk management strategy that mixes a wide variety of investments within a portfolio to minimize the impact of any single investment's performance.

Portfolio Theory

A framework for constructing a portfolio of assets in such a way that it optimizes the balance between risk and return.

Risk Aversion

The reluctance to take on investments with higher levels of uncertainty or potential for loss.