Which of the Following Statements Is FALSE

question 17

Multiple Choice

Which of the following statements is FALSE?

• A)If a factoring arrangement is with recourse,the factor will pay the firm the amount due regardless of whether the factor receives payment from the firm's customers.
• B)In a factoring of accounts receivable arrangement,the firm sells receivables to the lender (i.e. ,the factor),and the lender agrees to pay the firm the amount due from its customers at the end of the firm's payment period.
• C)Businesses can also obtain short-term financing by using secured loans,which are loans collateralized with short-term assets-most typically the firm's accounts receivables or inventory.
• D)Both the interest rate and the factor's fee vary depending on such issues as the size of the borrowing firm and the dollar volume of its receivables.

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Definitions:

Prostate Gland

A gland in the male reproductive system that produces a fluid that nourishes and transports sperm during ejaculation.

Ductus Deferens

A muscular tube in the male reproductive system that carries sperm from the epididymis to the ejaculatory duct.

Uterine Body

The central part of the uterus where a fetus develops during pregnancy.

Urogenital Sinus

In certain embryonic mammals, a common chamber formed by the fusion of the urethra and the vagina, leading to the exterior of the body.