The Factoring of Receivables

question 10

Multiple Choice

The factoring of receivables:

• A) typically has the factor becoming the firm's credit department
• B) is especially suited to the heavy durable goods industries
• C) has now been largely replaced with other types of financing
• D) places special risk on the firm whose receivables are being factored

---

Definitions:

Skill-Based Pay

A compensation system that rewards employees for acquiring and using specific skills, rather than paying them based on their job title or position.

Profit-Sharing Plan

A company program that gives employees a share in the profits of the business, usually in the form of bonuses or stocks.

Failure Reduction

Strategies or measures taken to decrease the likelihood and impact of errors or unsuccessful outcomes.

Line Managers

Describes managers who have direct responsibility over a particular department or group within an organization and are directly involved in organizational goals.