Which of the Following Statements Regarding Factoring Is Not True

question 13

Multiple Choice

Which of the following statements regarding factoring is not true?

• A)receivables lending is the process of factoring
• B)factoring is done at a discount to the third-party purchaser
• C)factoring discounts are often a function of the riskiness of the receivables
• D)factoring speeds the inflow of cash to the seller of the receivables

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Definitions:

Administrative Staff

Employees responsible for the management and support of an organization, often handling tasks related to office work, clerical duties, and general administration.

Lean Business Model

An approach to business development that emphasizes creating value for customers with minimal waste and resources.

Continuous Improvement

Continuous improvement is an ongoing effort to enhance products, services, or processes through incremental and breakthrough improvements, aiming for efficiency and effectiveness in organizational operations.

Inventory Control

The management and optimization of the purchasing, storing, and selling processes of a business's inventory.