If a Firm Refuses to Offer Credit, the Net Present

question 21

Multiple Choice

If a firm refuses to offer credit, the net present value of the transaction is:

• A)the cash revenues received minus the cost paid in time period 0.
• B)the discounted value of the revenues from time period 0.
• C)the net cash flow from the future payments to be received.
• D)determined by all of the above.
• E)always equal to zero.

Apply developmental psychology concepts to interpret human behaviors at different life stages.

Evaluate the strengths and weaknesses of longitudinal and cross-sectional research methods.

Understand the sequence and characteristics of Piaget's stages of cognitive development.

Identify and describe the stages and crises outlined in Erikson's psychosocial development theory.

---

Definitions:

Holder

An individual or entity that possesses or owns a particular document, often used in the context of financial instruments.

Payable to Bearer

A financial instrument or document that allows the person in possession (the bearer) to receive the assets specified therein, without the need to prove identity.

Identified Person

An individual who has been recognized or singled out from others based on specific criteria or identifiers.

Indorsed

means to have a signature added to the back of a financial instrument, thereby authorizing its use or transfer to another party.