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:

Face-To-Face

Direct interaction between two or more people in the same physical space.

Written Memos

Brief written messages, typically used within an organization to communicate information, directives, or updates.

Important Instructions

Critical or necessary directions or orders that need to be followed.

Immediate Action

A prompt response or decision taken swiftly to address a situation or problem.