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:

Articles of Partnership

A written agreement between partners in a business venture, outlining the terms and conditions of their partnership.

Share in Management

The distribution or allotment of managerial duties and rights among members within an organization or company.

Transformational Coping

A way of managing stressful events by changing them into less subjectively stressful events.

Counterdependence

An unhealthy, insecure pattern of behavior that leads to separation in relationships with other people.