When an Exporter Sells an Account Receivable to a Factor

question 13

True/False

When an exporter sells an account receivable to a factor, the factor will attempt to collect payment from the importer, but if the importer is unable to pay, the factor can collect the payment from the exporter.

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Definitions:

New Technology

The latest advancements or innovations in technology that offer improved solutions or efficiency.

Service Sector

A segment of the economy that provides intangible goods or services to consumers, including retail, healthcare, and financial services.

Labour-intensive

Describing a process or industry that requires a large amount of manual work relative to capital or machinery.

Skilled Labour

Refers to workers who have specialized training or skills, typically acquired through education or on-the-job experience, necessary for performing specific tasks or jobs.