Factoring Refers to the Process of Selling Off Accounts Receivable

question 160

True/False

Factoring refers to the process of selling off accounts receivable for cash.

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Definitions:

Domestic Opportunity Cost

The opportunity cost of producing goods domestically rather than importing them, measured by what is given up in the domestic production of other goods.

Capital-Intensive Products

Products that require a high amount of capital investment in machinery and equipment relative to labor input in their production process.

Capital Resources

Assets such as machinery, tools, and buildings that are used in the production of other goods and services.