Which One of the Following Is Least Likely to Be

question 17

Multiple Choice

Which one of the following is least likely to be correct about the factoring of receivables?

• A) The selling firm bears the risk of default.
• B) The higher the perceived quality of the receivables, the lower the discount rate.
• C) The discount is paid by the selling firm in the form of a reduced sales price.
• D)Factoring may be the cheapest method of avoiding a cash flow problem.

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Definitions:

Statistical Tests

Mathematical procedures used in statistics to determine if there is a significant difference between two or more groups or variables.

P Value

A statistical measure that helps researchers determine if their hypotheses are correct, indicating the probability of observing their results by chance.

Biodiversity

The variety and variability of life forms within a given ecosystem, region, or the entire Earth, encompassing species diversity, genetic diversity, and ecosystem diversity.

Ecosystems

Complex networks of different organisms interacting with each other and their environment within a particular area.