Accounts Receivable May Be Used as a Source of Financing

question 105

Multiple Choice

Accounts receivable may be used as a source of financing by

• A) pledging the receivables as loan collateral.
• B) "factoring" the receivables to a finance company.
• C) selling securities backed by the receivables.
• D) All of these options are correct.

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Definitions:

LLC

A Limited Liability Company, a flexible form of enterprise that blends elements of partnership and corporate structures.

Wrongful Acts

Actions that are illegal or immoral, violating legal or ethical standards.

Manager Members

Individuals who are both managers and members in a management structure, particularly in LLCs, having both operational control and ownership interests.

LLC

stands for Limited Liability Company, a business structure that combines elements of partnerships and corporations, providing owners with limited liability protection.