A Firm That Engages in Accounts Receivable Financing by Purchasing

question 130

Multiple Choice

A firm that engages in accounts receivable financing by purchasing accounts and assuming all credit risks.

• A) Discounted loan
• B) Pledge
• C) Factor
• D) Secured loan

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Definitions:

Initial Cost

The upfront expenditure involved in acquiring an asset, starting a project, or pursuing an investment.

Canadian Dollars

The official currency of Canada, represented by the symbol CAD.

Long-Run Exposure Risks

Risks that a business faces over an extended period that can impact its financial stability, such as exchange rate fluctuations.

Foreign Exchange

The conversion or trading of one currency into another currency.