The Most Expensive Form of Short-Term Financing Is Factoring of Accounts

question 183

True/False

The most expensive form of short-term financing is factoring of accounts receivable.

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Definitions:

Collateral

Assets pledged by a borrower to secure a loan or credit, which the lender may seize if the borrower fails to repay the agreed amounts.

Acquisition

The process of obtaining control of another company or business entity through purchase or merger.

Poison Pills

Strategies employed by companies to deter hostile takeovers, making the company less attractive to potential acquirers.

Takeover Attempt

An effort by one company to acquire control over another company, often by purchasing a significant portion of its stock.