Which of the Following Is Not a Characteristic of a Commercial

question 140

Multiple Choice

Which of the following is not a characteristic of a commercial finance company?

• A) advances funds to business concerns by discounting accounts receivable
• B) makes loans secured by chattel mortgages on machinery
• C) finances deferred-payment sales of commercial and industrial equipment
• D) holds a bank charter

---

Definitions:

Net Operating Income

Income from a company's everyday operations, excluding non-operating income and expenses like interest and taxes.

Sales Volume

The number of units of a product or service sold in a specific period of time.

Fixed Expenses

Costs that do not fluctuate with changes in production volume or sales, such as rent, salaries, and insurance premiums.

Net Operating Income

The earnings generated from the primary activities of a business, before subtracting interest and tax expenses.