Under an Advance Factoring Contract, Following Flow of Money Takes

question 56

Multiple Choice

Under an advance factoring contract, following flow of money takes place: A: Factor pays a percentage of the invoice face value to the seller at the time of sale B: The remainder of the purchase price is held by factor until the payment by the account debtor is made. C: The cost associated with the transaction is paid upfront by the seller to the factoring agent.

• A) Only B
• B) A, B and C
• C) Only C
• D) Only A and B

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Definitions:

Theories of Motivation

Psychological theories that seek to explain how and why people are motivated to act in certain ways, including needs, desires, and goals.

Drive Theories

Theories suggesting that motivation is primarily based on the needs to reduce internal states of tension and restore homeostasis.

Clark Hull

An influential psychologist known for his drive-reduction theory of learning and motivation within the behaviorist framework.

Primary Motive

Fundamental drives or motivations that are biological in nature, such as hunger, thirst, or the need for sleep.