Which of the Following Statements Is Correct

question 123

Multiple Choice

Which of the following statements is correct?

• A) In a factoring arrangement,the factor always performs three functions: (1)credit checking, (2)lending,and (3)receivables collection.
• B) The pledging of accounts receivable involves a transfer of the risk associated with accounts receivable from the borrower to the lender.
• C) In a factoring arrangement,the seller can select various combinations of credit checking,lending,and risk bearing the factor performs by changing provisions in the factoring agreement.
• D) In a factoring agreement,the factor would not perform the credit checking and risk taking functions without performing the lending function,because the former are required before the factor can lend to the seller.
• E) The financing of accounts receivable involves an agreement which is informal and non-binding,which makes it difficult for the factor to protect itself.

Understand the distinctions between public and private sector bargaining, including prohibitions and obligations.

Analyze the impact of bargaining tactics and strategies on negotiation outcomes.

Recognize the influence of economic, legal, and organizational factors on strike incidence and outcomes.

Understand the rights and legal limitations concerning strike participation and strike actions.

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Definitions:

Price-Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, indicating the dollar amount investors will pay for $1 of earnings.

Market Price

The existing cost for buying or selling an asset or service.

Common Stock

Common stock represents shares of ownership in a corporation, giving shareholders voting rights and a share in the company's profits through dividends.

Acid-Test Ratio

A financial metric used to evaluate a company's short-term liquidity position by comparing its most liquid assets (excluding inventory) to its current liabilities.