Which of the Following Statements About Factoring Is True

question 96

Multiple Choice

Which of the following statements about factoring is true?

• A) The firm, not the factor, bears the risk of collecting bad receivables in a factoring arrangement.
• B) Factoring involves the outright sale of a firm's accounts receivable to the factor.
• C) The borrowing firm is able to obtain a greater advance against inventory in a factoring arrangement than in a typical line of credit secured by accounts receivable.
• D) Factoring firms sell the receivables of other firms.

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Definitions:

Environment

The surrounding conditions and influences affecting the growth or development of living organisms.

Identical Twins

Twins who originate from the same fertilized egg, sharing exactly the same genetic material and often having very similar appearances.

Monozygotic Twins

Twins derived from a single fertilized egg, leading them to be genetically identical.

Senses

Biological systems used by organisms to detect and process sensory information from the environment, including sight, hearing, touch, taste, and smell.