Which of the Following Best Describes Recourse Factoring

question 39

Multiple Choice

Which of the following best describes recourse factoring?

• A) The company, not the factor, assumes the financial loss for bad debts arising from credit sales.
• B) Uncollectible accounts are covered by insurance. The insurance company keeps any amounts that it may recover from its own collection efforts.
• C) For an additional fee, the factor assumes responsibility for collecting an agreed upon amount of bad debts but has no legal rights to act against the debtor.
• D) The factor takes responsibility for bad debts and is legally entitled to pursue the debtor through the courts.
• E) The initial factor bundles the bad debt contracts and sells them for a deep discount to a subcontractor.

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Definitions:

IgE

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Monoclonal Antibodies

Engineered proteins designed to mimic the immune system's ability to fight off harmful pathogens like viruses.

Autoimmune Disease

A condition where the immune system mistakenly attacks and damages the body's own tissues.

Lymphatic System

A network of vessels, nodes, and organs that helps to maintain fluid balance, protect against infection, and remove cellular waste in the body.