In the Context of Financial Tools, a Business Can Quickly

question 82

Multiple Choice

In the context of financial tools, a business can quickly generate cash in the short run by selling accounts receivable at a discount to another company.This is a technique known as ________.

• A)crowd funding
• B)asset leasing
• C)factoring
• D)leasing

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Definitions:

Tax-free

Financial gains or receipts that are not subject to tax by authorities, often due to specific exemptions or regulations.

Tax-deferred Plans

Retirement or investment accounts that allow taxpayers to postpone tax liabilities on earnings until funds are withdrawn in the future.

Retirement

The period in an individual's life during which they cease full-time work, typically due to age.

SIMPLE

An acronym for Savings Incentive Match Plan for Employees, a type of retirement savings plan that allows employees and employers to contribute to traditional IRAs set up for employees.