The Risk Borrowers Face of Not Being Able to Maintain

question 56

Multiple Choice

The risk borrowers face of not being able to maintain the level of their debt is known as:

• A)credit risk
• B)funding risk
• C)default risk
• D)capital risk
• E)market risk.

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Definitions:

Just-In-Time

An inventory strategy companies employ to increase efficiency and decrease waste by receiving goods only as they are needed in the production process, thereby reducing inventory costs.

Inventory Systems

are methodologies and procedures used by businesses to track, manage, and plan for current and future inventory and stock levels.

Working Capital Accounts

Accounts related to the short-term financial operations of a business, such as cash, inventory, and accounts payable and receivable.

Accounts Receivable

Funds that customers owe to a company for products or services provided but not yet compensated for.