The Statement Concerning Invoice Discounting That Is Not True Is

question 13

Multiple Choice

The statement concerning invoice discounting that is not true is:

• A) it is a more confidential form of finance than factoring.
• B) it is currently a more important source of funds to businesses than factoring.
• C) it is more expensive that factoring.
• D) the responsibility for collecting the trade debts outstanding remains with the business.

Calculate real GDP from nominal GDP data using the GDP deflator.

Analyze economic growth or decline using real GDP data.

Understand and calculate the impact of price changes on nominal and real GDP.

Understand how to calculate percentage changes in GDP using real GDP and the GDP deflator.

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Definitions:

Acquisition Of Inventory

The process through which a business purchases goods to be sold, which may be raw materials for manufacturing or finished goods for resale.

Collection Of Cash

The process by which businesses gather or accumulate monetary payments received from customers.

Committed Operating Loan

A loan agreement where the lender agrees to provide a fixed amount of operating capital to a borrower for a specified term.

Non-Committed

Non-Committed in finance refers to facilities or funding that is not contractually guaranteed and can be withdrawn under certain conditions.