Factoring Refers to

question 75

Multiple Choice

Factoring refers to

• A)determining the aging schedule of the firm's accounts receivable.
• B)the sale of a firm's accounts receivable to another firm.
• C)the determination of the average collection period.
• D)scoring a customer based on the 5 C's of credit.

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Definitions:

Agent

An individual authorized to act on behalf of another, known as the principal, in dealings with third parties.

State

A political entity that possesses sovereignty and governance over a defined geographic area.

Corporations

Legal entities recognized by law as separate from their owners, with rights to enter contracts, own assets, and be liable for debts.

Model Business Corporation Act

A set of statutory provisions designed to provide a standard legal framework for the formation, operation, and dissolution of corporations in the United States.