A Type of Short-Term Loan Where the Borrower Sells Its

question 336

Multiple Choice

A type of short-term loan where the borrower sells its receivables to the lender up-front, but at a discount to face value, is called:

• A) A compensating balance.
• B) Assigned receivables financing.
• C) A letter of credit.
• D) Factored receivables financing.
• E) A bond.

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Definitions:

Goodwill

The intangible asset reflecting the value of a business's reputation, brand, and customer relationships.

Exposure

The state of being subjected to contact, attention, or visibility, especially in contexts of learning or media.

Request

A formal or informal petition for something to be provided or done.

Communication Situation

The context or environment in which communication occurs, including the participants, medium, and purpose.