Which of the Following Is NOT One of the Benefits

question 151

Multiple Choice

Which of the following is NOT one of the benefits of a business accepting credit cards from their customers?

• A) The business doesn't take the risk of the customer failing to pay.
• B) The business can attract more customers and more sales.
• C) The business earns a higher profit on credit card sales than cash sales.
• D) The business does not have to check the credit ratings of customers.

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Definitions:

Cash Payback Period

The time it takes for a business to recover its investment in a project, through cash inflows.

Desired Rate

Often refers to the target internal rate of return or the specific return percentage that an investor aims for in financial investments.

Present Value Index

A financial calculation that helps to evaluate the profitability of an investment or project by considering the present value of expected cash flows.

Net Present Value Analysis

A method used to evaluate the profitability of an investment or project by calculating the difference between the present value of cash inflows and outflows over time.