If a Creditor Assigns a Debt Owed to It as a Result

question 12

Multiple Choice

If a creditor assigns a debt owed to it as a result of a contractual obligation that neither party has as yet completely performed, how would the creditor be advantaged by having done so?

• A) by the reduction of liability insurance premiums
• B) by the reduction of its accounts receivable
• C) by the reduction of the risk of remuneration default
• D) by the early collection of accounts receivable

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Definitions:

Specialized Knowledge

Expertise or skills in a specific field or area, usually acquired through extensive training or experience.

Independence

The state or condition of having the freedom to act and make decisions without external control or influence.

Transnational Strategy

A strategy used by multinational companies to operate and adapt their products or services across different countries while maintaining some level of central control.

Cross-Price Elasticity

An indicator of the responsiveness in the demand for a certain product when there's a variation in the cost of a different product.