When a Firm Sells Its Accounts Receivables to a Financial

question 40

Multiple Choice

When a firm sells its accounts receivables to a financial institution,it is called:

• A) captive financing.
• B) collateralization.
• C) securitization.
• D) legalization.
• E) None of these.

---

Definitions:

Criterion-based Induction

A method of reasoning in which a conclusion is drawn based on a set of criteria that are believed to support that conclusion.

Survey Method

A research method that involves collecting data from a predefined group of respondents to gather information and insights on various topics.

Questionnaire

A set of questions designed to gather information from respondents for research, feedback, or assessment purposes.

Buying Habits

Patterns or tendencies that consumers exhibit when purchasing products or services, often influenced by various factors such as culture, personal preferences, and economic conditions.