Characteristics of Factoring Accounts Receivable Include All of the Following

question 89

Multiple Choice

Characteristics of factoring accounts receivable include all of the following except which one?

• A) a firm sells its accounts receivable to a finance company
• B) receivables are sold without recourse
• C) the firm incurs any losses from nonpayment
• D) maturity factoring and advance factoring are the two basic ways of financing

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Definitions:

Queuing Theory

The mathematical study of waiting lines or queues, which aims to predict queue lengths and waiting times in various service or process systems.

Linear Programming

A mathematical method for determining a way to achieve the best outcome (such as maximum profit or lowest cost) in a given mathematical model for some list of requirements represented as linear relationships.

Mathematical Forecasting

The use of mathematical models and statistical techniques to predict future events, trends, or behaviors based on historical data.

Petroleum Reserves

Quantities of crude oil and natural gas geologically and commercially feasible for extraction.