A Firm Sells Its 90 Days Receivables Through Recourse Base

question 2

Multiple Choice

A Firm sells its 90 days receivables through recourse base factoring thus

• A) it avoids the costs of determining counterparty creditworthiness.
• B) increases political and FX risk.
• C) receives cash proceeds at lower cost compared to standard credit line.
• D) accepts the risk that not all receivables will be collected.

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Definitions:

Experience

The knowledge or skill that one gains over time through involvement in or exposure to activities.

Application Letter

A formal letter submitted to apply for a particular job or position, outlining the applicant's qualifications and interest in the opportunity.

Professional

Pertaining to or connected with a profession, exhibiting a courteous, conscientious, and generally businesslike manner in the workplace.

Applicants

Individuals who apply for a position, program, or opportunity.