Many Small Businesses Rely on Factoring as a Source of Short-Term

question 214

Multiple Choice

Many small businesses rely on factoring as a source of short-term financing because

• A) factoring provides a much cheaper source of funds than bank loans.
• B) interest paid to a factor qualifies for a tax credit.
• C) small firms often find it difficult to qualify for bank loans.
• D) loans provided by factors do not require collateral.

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Definitions:

Obsessions

Persistent, unwanted thoughts, images, or impulses that cause significant distress or anxiety.

Delusions

Strongly held false beliefs or judgments, which are resistant to reason or confrontation with actual fact, often occurring as a symptom of psychiatric disorders.

Hallucinations

Perceptions in a conscious and awake state in the absence of external stimuli which have qualities of real perception.

Compulsions

Actions or thoughts repeatedly carried out by a person compelled by an obsession or by strict rules.