The Factoring of Accounts Receivable Consists Of

question 31

Multiple Choice

The factoring of accounts receivable consists of:

• A) selling accounts receivable at a profit.
• B) pledging accounts receivable as collateral for a loan.
• C) selling accounts receivable to raise working capital.
• D) buying accounts receivable from a factor.

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Definitions:

Suppliers

Businesses or individuals that provide goods or services to another entity in a supply chain.

Good Policy

A set of principles or guidelines designed to achieve rational outcomes, often considered to be beneficial for the majority.

Bad Policy

Decision-making or guidelines that result in adverse outcomes or fail to achieve the intended objectives, often criticized for inefficiency or ineffectiveness.

Government Intervention

Actions taken by a government to influence or directly manage an economy, industry, or market, typically with the goal of correcting market failures or achieving social objectives.