Which of the Following Is a Market Tenet of Warren

question 189

Multiple Choice

Which of the following is a market tenet of Warren Buffett?

• A) long-term prospects
• B) resistance to institutional imperative
• C) creation of one dollar of market value for every dollar retained
• D) purchase at discount to intrinsic value
• E) Product is not faddish.

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Definitions:

Net Present Value

A financial metric that calculates the value of projected cash flows over time by using a discount rate, showing the difference between the present value of cash inflows and outflows.

Credit Policies

Guidelines that set the criteria for extending credit to customers, including terms of payment and interest rates.

Aging Schedule

A table that shows the breakdown of accounts receivable into categories based on the length of time they have been outstanding.

Credit Policy

A credit policy is the set of guidelines that a company follows to determine the creditworthiness of customers and the terms of credit to offer.