If a Small Business Uses Its Receivables as Collateral for a Loan

question 103

True/False

If a small business uses its receivables as collateral for a loan in the process known as pledging, the finance company will collect the accounts receivable.

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Definitions:

Crisis

A critical or tumultuous situation that requires a decisive response.

Performance Norms

The accepted standards or expectations of performance within a group or organization.

Team Cohesiveness

the strength of the relationships and the level of commitment among team members towards their common goals.

Task Needs

Task needs are the requirements or conditions necessary to successfully complete a specific job or project.