A Financial Asset That Represents a Claim on Another Financial

question 60

Multiple Choice

A financial asset that represents a claim on another financial asset is classified as a ________ asset.

• A) secondary
• B) optioned
• C) contracted
• D) derivative
• E) primary

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Definitions:

Profit Potential

The capability of a business or investment to generate earnings over a period, indicating its financial viability and attractiveness.

Lifetime Value Analysis

A comparison of the costs of retaining customers and the costs of acquiring new customers, to determine how much money each type of customer requires.

Retaining Customers

Strategies and activities that a business uses to prevent customer defection and to maintain long-lasting relationships with them.

Acquiring New Customers

The process of gaining new consumers or clients for a business's products or services, often involving marketing and sales strategies.