Pledging Is the Process of Putting Up Accounts Receivable as Collateral

question 19

True/False

Pledging is the process of putting up accounts receivable as collateral to obtain cash.

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Definitions:

Bill of Exchange

A written, unconditional order by one party, directing another party to pay a specific sum of money to a third party on demand or at a set time.

Vertical Merger

The combination of two or more companies that operate at different levels within the same industry's supply chain.

Horizontal Merger

A merger between companies operating at the same level in an industry or supply chain, often aimed at reducing competition or achieving economies of scale.

Conglomerate Merger

A type of business combination where two or more corporations in completely unrelated industries combine.