Concerning Factoring, All of the Following Are True Except

question 19

Multiple Choice

Concerning factoring, all of the following are true except:

• A) factors prefer business over consumer accounts
• B) factoring is done at a discount to the third party purchaser
• C) factoring discounts are often a function of the riskiness of the receivables
• D) factoring speeds the inflow of cash to the seller of the receivables
• E) receivable lending is the process of factoring

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Definitions:

Atmospheric Pressure

The pressure exerted by the weight of the atmosphere at any given point, usually measured in millibars (mb) or atmospheres (atm).

Voltage

An electrical measurement of potential difference, electrical pressure, or electromotive force (EMF).

Cuprous Cyanide

A chemical compound used to electroplate copper to iron.

Plating Copper

A process used to coat a surface with a thin layer of copper, often for improving electrical conductivity or for aesthetic purposes.