Factoring Is the Process Where Accounts Are Purchased by a Nonfinancial

question 75

True/False

Factoring is the process where accounts are purchased by a nonfinancial company at a discount from their face value in exchange for the responsibility of collection.

---

Definitions:

Consumer Behavior

The analysis of how consumers' preferences and economic decisions affect the demand for goods and services.

Marginal Utility

The change in total utility a person derives from consuming an additional unit of a good or service.

Total Utility

The overall satisfaction or benefit a person receives from consuming a certain amount of goods or services.

Utility Maximization

The principle that individuals or firms seek to allocate their resources in a manner that maximizes their satisfaction or utility.