Factoring with Recourse Implies That If a Company Does Not

question 17

True/False

Factoring with recourse implies that if a company does not pay its bill, the factor must absorb the loss.

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Definitions:

Variable Expenses

Expenses that vary in direct proportion to changes in an activity or production level, similar to variable costs.

Fixed Costs

These are expenses that do not change with changes in the production volume or sales, such as rent, salaries, and insurance.

Net Income

The residue of all revenues and gains minus all expenses and losses for a period, often known as the bottom line.

Sales

The total amount of income generated by the selling of goods or services by a company during a certain period.