When a Factor Does Not Assume the Bad Debt Risk

question 220

True/False

When a factor does not assume the bad debt risk on accounts it purchases, the factoring relationship is said to be "without recourse."

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Definitions:

Articulate Surface

A surface of a bone that makes a joint with another bone, allowing for varying degrees of movement.

Convex Surface

A curved surface that bulges outward, resembling the exterior of a sphere or circle.

Concave Depression

A rounded or hollowed-out area on a surface or body part, often involved in joint articulation.

Synovial Membranes

Specialized connective tissue that lines the inner surface of capsules of synovial joints and tendon sheaths, facilitating smooth movement.