In the Context of Short-Term Financing, Which of the Following

question 23

Multiple Choice

In the context of short-term financing, which of the following statements is true of a factor?

• A) It buys the accounts receivables of other firms.
• B) It is a requirement lenders impose on borrowers as a condition of loans.
• C) It is the mix of equity and debt financing a firm uses to meet its permanent financing needs.
• D) It requires firms to maintain their own collection department.

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Definitions:

Adjectives

Words used to describe or modify nouns, often to specify qualities or characteristics.

Past Perfect Tense

A tense in grammar used to describe an action that was completed before another past action.

Sexist Language

Language that discriminates against or stereotypes individuals based on their gender.

Techniques

Methods or ways of carrying out a particular task or process.