Export Receivables Are Normally Sold at a Discount

question 2

Multiple Choice

Export receivables are normally sold at a discount. The size of the discount depends on the following factors EXCEPT:

• A) overdraft fees.
• B) collection risk.
• C) cost of credit insurance.
• D) size of financing and services fees.

---

Definitions:

Warranty Work

Repair or replacement services provided at no charge, covered under a product’s warranty, usually to fix defects or malfunctions within a specific period after purchase.

Sales Price

The amount a customer pays or is charged for a product or service.

Part Replacement

The process of substituting a defective, broken, or outdated component of a machine or system with a new one.

Radioactive Materials

Substances that emit radiation, often used in medical treatments, research, and power generation.