A Factor Buys Receivables from Businesses for a Fee and Collects

question 129

True/False

A factor buys receivables from businesses for a fee and collects the payment directly from customers.

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Definitions:

Equilibrium

A state of balance in a market or economy where supply equals demand, resulting in stable prices.

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive.

Market Price

The present cost at which an item or service is available for purchase or sale in a market.

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or service is not achieved or is not achievable.