Pledging Receivables Will Get an Owner About One-Half of the Amount

question 28

Multiple Choice

Pledging receivables will get an owner about one-half of the amount that can be collected,whereas,factoring can immediately get an owner _____ percent of the amount due.

• A) 90-95
• B) 75-80
• C) 40-45
• D) 20-25

---

Definitions:

Yield Management Pricing

A pricing strategy that involves adjusting prices based on changing demand and supply conditions, often used in industries like airlines and hotels to maximize revenue.

Cost-plus-percentage-of-cost Pricing

A pricing strategy where the selling price is determined by adding a specific percentage of markup to the product's cost.

Target Return On Investment Pricing

Pricing strategy where the price is set based on the desired return on investment.

Standard Markup

The common percentage added to the cost price of goods to determine their selling price.