The Form of Short-Term Finance Where Another Entity Takes Over

question 23

Multiple Choice

The form of short-term finance where another entity takes over the firm's debtor's accounts for a payment of around 85% of the accounts' balance is known as:

• A) discounting.
• B) debt factoring.
• C) bills receivable.
• D) none of the above.

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Definitions:

Unit Of Output

The measure of the quantity of a product or service produced by a firm, industry, or economic sector.

Competitive Industry

An industry in which no single firm has the power to influence the price of its product; there are many sellers and buyers, and products are largely homogeneous.

Limited Supply

A condition where the availability of a particular good is restricted in the market, often leading to increased prices.

Production Efficiency

A state in which the economy or a production process can no longer produce additional amounts of a good without lowering the production level of another product.