What Two Types of Financing Agreements Are Available to Companies

question 145

Essay

What two types of financing agreements are available to companies who wish to obtain cash from their accounts receivables? Why is it important to note whether or not the receivables are transferred with or without recourse?

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Definitions:

Monocline

A type of geological fold in which all layers are inclined in the same direction; it is an example of a simple bend in rock layers.

Lineation

A linear structure in a metamorphic rock.

Nonfoliated Metamorphic Rock

Metamorphic rocks that do not exhibit a layered or banded appearance as a result of their mineral grains being arranged randomly.

Hornfels

A fine-grained, nonfoliated metamorphic rock, typically formed by contact metamorphism of nearly any kind of starting rock.