Which of the Following Is Least Likely to Be Correct

question 18

Multiple Choice

Which of the following is least likely to be correct about the factoring of receivables?

• A)the selling firm bears the risk of default
• B)the higher the perceived quality of the receivables, the lower the discount rate
• C)the discount is paid by the selling firm in the form of reduced sales price
• D)factoring may be the cheapest method of avoiding a cash flow problem

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Definitions:

Social Framework

The structured set of social institutions, norms, and practices that guide and shape individual and collective behavior.

Canada

A country located in the northern part of North America, known for its multicultural population and diverse landscapes.

Monoculture

The cultivation of a single crop in a given area, or a cultural lack of diversity due to the dominance of a single social or cultural group.

Homogeneity

The condition of everything being identical or of a single type.