When a Business Sells Its Accounts Receivable to a Finance

question 84

Multiple Choice

When a business sells its accounts receivable to a finance company, this is called

• A) selling short.
• B) factoring.
• C) mortgaging the future.
• D) pledging receivables.

---

Definitions:

Obey

To follow the directions or commands given by someone in authority.

Tie Shoelaces

A manual skill involving the tying of laces on shoes, typically learned in early childhood as part of developing fine motor abilities.

Conservation Of Matter

A fundamental principle of classical physics that states that matter cannot be created or destroyed in an isolated system.

Abstract Terms

Words that represent ideas, concepts, or qualities that are not directly linked to sensory experiences.