There Are Essentially Two Descriptions of How Entrepreneurs Add Value

question 75

True/False

There are essentially two descriptions of how entrepreneurs add value to the economy: creative destruction and by being entrepreneurially alert.They are essentially the same thing.

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Definitions:

Factoring Fee

A charge assessed by a factoring company for providing cash advances to businesses by purchasing their accounts receivable at a discount.

Accounts Receivable

Outstanding payments due to a firm from its clients for delivered services or products yet to be settled.

Factoring

A financial transaction where a business sells its accounts receivable to a third party at a discount in exchange for immediate cash.

Credit Sales

Sales in which revenue is recognized at the point of sale but payment is deferred.