A Company Sells Its Accounts Receivable to Another Company So

question 43

Multiple Choice

A company sells its accounts receivable to another company so that it could have sufficient cash to pay for a trade show it wants to participate in.Which term refers to the company that purchased the receivables?

• A) commercial paper broker
• B) commercial clearing house
• C) forfeiting house
• D) factoring house

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Definitions:

Nonprofit Organizations

Nonprofit Organizations are entities that operate for the collective, public, or social benefit, rather than to generate profit for owners or investors.

Federal Funds

The reserve balances that commercial banks hold at their regional Federal Reserve Bank, often lent overnight to other banks to help meet reserve requirements.

Functional Competition

Refers to competition among businesses that offer different goods or services that meet the same customer need or desire.

Direct Competition

Businesses or products that target the same customers and satisfy the same needs.