Which of the Following Statements Is Incorrect

question 14

Multiple Choice

Which of the following statements is incorrect?

• A)A captive finance subsidiary's purpose is to finance sales of the parent company's products and services.
• B)An operating agreement between the parent and the captive specifies the type of receivables that qualify for same and specific services provided by the parent.
• C)A captive can be used to finance distributor or dealer inventories until a sale occurs.
• D)A captive is rarely used to finance products leased to others.

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Definitions:

Actual Performance

The real, measurable outcomes or results achieved in a given period, often compared to planned or expected performance.

Performance Meets Objectives

A situation where the actual outcomes align with the targeted goals set by an organization or individual.

Controlling

The process of measuring performance and taking action to ensure desired results.

Plans Fulfilled

The successful execution or completion of predetermined strategies or objectives.