Rel Eston, a Network Service Provider, Sells Off Its Accounts

question 35

Multiple Choice

Rel Eston, a network service provider, sells off its accounts receivable to a financing company in order to gain early access to funds that would help accelerate company's growth trajectory in the market in the following year. Which of the following short-term financing options is being used by Rel Eston in the given scenario?

• A) Trade credit
• B) Commercial paper
• C) Short-term bank loans
• D) Factoring

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Definitions:

Psychology

An examination of the human psyche and its capabilities, focusing on their impact on behavior in certain environments.

Motivation

The internal process that activates, guides, and maintains behavior towards achieving a goal.

Phenomenology

A research approach focusing on the subjective experience and interpretations of individuals.

Physiology

Physiology is the branch of biology that studies the functions and mechanisms operating within living organisms and their parts.