Many Small Businesses Rely on Factoring as a Source of Short-Term

question 214

Multiple Choice

Many small businesses rely on factoring as a source of short-term financing because

• A) factoring provides a much cheaper source of funds than bank loans.
• B) interest paid to a factor qualifies for a tax credit.
• C) small firms often find it difficult to qualify for bank loans.
• D) loans provided by factors do not require collateral.

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Definitions:

Observational Learning

The process of learning behaviors by watching and imitating others, without direct instruction or reinforcement.

Observational Learning

A learning process through watching the actions of others and imitating those actions.

Physical Punishment

The use of physical force with the intention of causing a child to experience pain, but not injury, for purposes of correction or control.

Operant Conditioning

A method of learning that uses rewards and punishments to influence behavior.