Pledging Accounts Receivable Has All of the Following Characteristics Except

question 142

Multiple Choice

Pledging accounts receivable has all of the following characteristics except:

• A)money is advanced to the borrower as a loan against accounts receivable
• B)accounts receivable balances remain on the balance sheet
• C)the customer payment is made to the firm, which then submits the payment to the bank
• D)all of the above are characteristics of pledging

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Definitions:

Model Business Corporation Act (MBCA)

A model set of laws prepared by legal experts to provide a standard for corporate legislation across states, aiming to encourage uniformity.

Dissenters' Rights

Legal provisions that allow shareholders to object to certain corporate actions, typically offering them a right to receive payment for their shares.

National Securities Exchange

A securities exchange registered with the SEC, adhering to governmental standards and regulations for trading securities.

Substantially All

A term used in legal and finance contexts to indicate a majority or near-total portion of an asset, company's assets, or activity.