A Company Sells Its Accounts Receivable to an Intermediary

question 9

Multiple Choice

A company sells its accounts receivable to an intermediary.The intermediary collects the receivables from the customer.This is an example of ________.

• A) an unsecured loan
• B) factoring
• C) trade credit
• D) a secured loan
• E) a commercial paper

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Definitions:

Network Theory

A theory in sociology and other fields that examines how networks of social interactions influence behavior and outcomes.

Rational Choice Theory

A theory in social science that posits individuals always make prudent and logical decisions that provide them with the highest amount of personal utility.

Corporate Actors

Entities such as companies or businesses that are capable of making decisions and acting in the economic or social sphere, often with considerable influence.

James Coleman

An influential American sociologist known for his contributions to educational sociology, social theory, and the concept of social capital.