When Platinum Fitness Sells Its Accounts Receivable to a Financial

question 144

Multiple Choice

When Platinum Fitness sells its accounts receivable to a financial institution, it receives less than the full value of the accounts receivable.Which of the following is a benefit Platinum Fitness receives from this arrangement?

• A) It will receive the money in one month instead of two months.
• B) It will have more inventory than its competitors.
• C) This will allow closer relationships with its customers.
• D) The cash will be received right away.
• E) Platinum will be responsible for collecting the accounts.

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Definitions:

Attachment Relationship

An emotional bond between individuals, characterized by a longing to maintain closeness, typically seen between a child and caregiver, influencing psychological development.

Clings

Refers to the behavior of physically or emotionally holding on to something or someone, often driven by attachment or fear.

Avoidant Attachment

A type of insecure attachment style characterized by a desire to maintain distance from others and a reluctance to engage in close emotional relationships.

Van Ijzendoorn

a researcher known for work in the field of attachment theory, particularly for cross-cultural studies on attachment patterns.