John Is a Factor Who Has Just Bought $40 000

question 136

Short Answer

John is a factor who has just bought $40 000 worth of finished goods for $24 000. The profit that he will make on this transaction depends on
the quality of the receivables, the cost of collecting them, and interest rates.
the cash he has available, and the trade credit he is able to get.
the availability of government loans, the quality of the receivables, and the interest rate.
the interest rate, the cost of collecting the receivables, and the maturity date of bonds of his company.
the general state of the economy, the number of firms who might be interested in the receivables, and the amount of money those firms have available.

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Definitions:

Precipitator

An environmental control device, such as an electrostatic precipitator, that removes particles from a flowing gas using the force of an induced electrostatic charge.

Air Filter

A device that removes particles, such as dust and pollen, from air to improve quality or protect machinery by preventing the accumulation of contaminants.

Static Electricity

The buildup of electric charge on the surface of objects, usually caused by friction between materials.

Electrons Moving

The movement of electrons through a conductor, which constitutes the basis of electric current.