Which of the Following Exemplifies the Role and Purpose of the Sales/collection

question 27

Multiple Choice

Which of the following exemplifies the role and purpose of the sales/collection process?

• A)American Home Shield sells warranties to new homeowners.
• B)New homeowners pay cash to American Home Shield for warranties.
• C)Both American Home Shield sells warranties to new homeowners and new homeowners pay cash to American Home Shield for warranties.
• D)Neither American Home Shield sells warranties to new homeowners nor new homeowners pay cash to American Home Shield for warranties.

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Definitions:

Cash Outflows

Expenditures of cash by a business, including operating expenses, investment outlays, and financing payments.

Dividend

A fraction of a corporation's profits allocated to its stockholders, often as cash or more shares.

Required Return

This is the minimum return an investor expects to receive on an investment, factor in the risk involved.