When a fiRm Sells Its Trade Receivables to a fiNancial

question 28

Multiple Choice

When a firm sells its trade receivables to a financial institution, it is called:

• A)captive financing.
• B)collateralization.
• C)securitization.
• D)legalization.
• E)None of the above.

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Definitions:

Social Capital

The web of connections between individuals residing and operating within a specific community, which facilitates the smooth operation of that community.

Team Build

The process of developing a cohesive, effective team through various activities and strategies aimed at improving communication, trust, and collaboration among team members.

Socializing Informally

Engaging in casual interactions outside of structured or professional settings, which can foster relationships and networking.

Knowledge Valuation

The process of determining the importance or worth of information, insights, or specific expertise within a particular context.