Many Small Businesses Rely on Factoring as a Source of Short-Term

question 214

Multiple Choice

Many small businesses rely on factoring as a source of short-term financing because

• A) factoring provides a much cheaper source of funds than bank loans.
• B) interest paid to a factor qualifies for a tax credit.
• C) small firms often find it difficult to qualify for bank loans.
• D) loans provided by factors do not require collateral.

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Definitions:

Transducer

A device that transforms power from one system to another in the same or different form.

Power

The ability or capacity to do something or act in a particular way; often refers to the amount of control one has over circumstances or other entities.

Planes

A flat or relatively smooth surface; points of reference by which positions or parts of the body are indicated.

Points Of Reference

Specific locations or landmarks used to establish positions or to measure distances.