When Accounts Receivable Are Bought from a Company for Capital

question 4

Multiple Choice

When accounts receivable are bought from a company for capital funding it is called

• A) trade credit.
• B) financing.
• C) leasing.
• D) factoring.

---

Definitions:

Job Evaluation

A systematic process for determining the relative value or worth of a job in an organization, which helps to establish fair compensation.

Skill-Based Pay

A compensation system where pay levels are determined by an employee’s skills, knowledge, and the ability to perform certain tasks, rather than job title or rank.

Large Hotel

A significant accommodation facility offering a range of services, often including rooms, food, and entertainment, for travelers and guests.

Flexibility

The ability to adapt to changes or to adjust operations, policies, or procedures as required by circumstances or business needs.