Which of These Is an Entity Who Will Buy Accounts

question 65

Multiple Choice

Which of these is an entity who will buy accounts receivable before they are due on a discounted basis, with the spread between the discounted price and the receivable's face value providing them with the expected compensation for both the time value of money and for the expected level of defaults amongst the accounts receivable?

• A) commercial bank
• B) factor
• C) receiver
• D) blanket loaner

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Definitions:

Digging Sticks

Simple tools used since ancient times for breaking the ground for planting seeds or for digging up roots and tubers.

Plows

Agricultural tools used for turning over the soil to prepare it for planting seeds by cutting, lifting, and turning over the soil.

Irrigation

The artificial application of water to land to assist in the growth of crops.

Fertilizer

A chemical or natural substance added to soil or land to increase its fertility and enhance plant growth.