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:

Classically Conditioned Associations

Learned connections between two stimuli, established through conditioning, where a neutral stimulus becomes associated with a meaningful stimulus, eliciting a response.

Three-Stage Information-Processing Model

A framework in cognitive psychology that describes how information is processed in three stages: sensory memory, short-term memory, and long-term memory.

Sensory Memory

The shortest-term element of memory, where sensory information is retained for a very short period of time, such as a few seconds.

Short-Term Memory

The ability to keep a limited volume of data in a state of immediate readiness for a brief duration.