Why Would a Company Sell Receivables to Another Company

question 39

Multiple Choice

Why would a company sell receivables to another company?

• A) To improve the quality of its credit granting process.
• B) To limit its legal liability.
• C) To accelerate access to amounts collected.
• D) To comply with customer agreements.

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Definitions:

Cognitive Component

Relates to the mental processes involved in understanding, reasoning, and decision-making.

Behavioral Component

An aspect of attitudes reflecting intentions or observable responses toward a person, group, or concept.

Emotional Intelligence

The ability to understand, use, and manage one's own emotions positively to relieve stress, communicate effectively, empathize with others, and overcome challenges.

Self-motivation

The ability of an individual to initiate and persist at a task or goal without external encouragement or reward.