Factoring Arrangements

question 73

Multiple Choice

Factoring arrangements

• A) are ways to accelerate receivable collections.
• B) involve no commissions or service charges because the factor is guaranteed collections on the due date.
• C) are generally used by businesses that are insolvent.
• D) are mainly used in the textile and furniture industries.

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Definitions:

Health Insurance

A form of insurance coverage that pays for medical and surgical expenses incurred by the insured, often offered by employers as part of benefits packages.

CPI

Stands for Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, used to estimate the economy's inflation rate.

Real Wages

Wage increases larger than rises in the consumer price index; that is, the real earning power of wages

Expectancy Theory

A motivation theory suggesting that individuals are more likely to act in a certain way based on the expectation that the act will be followed by a given outcome and the attractiveness of that outcome.