In ________, a Company Has an Ongoing Relationship with a Bank

question 5

Multiple Choice

In ________, a company has an ongoing relationship with a bank that routinely buys its short-term accounts receivable at a discount.

• A) forfaiting
• B) factoring
• C) a barter transaction
• D) a cash-in-advance transaction
• E) an open accounts transaction

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Definitions:

Glucose

A primary sugar important for fueling biological processes in living organisms and forming part of many carbs.

Liver

A vital organ found in vertebrates that performs numerous functions, including detoxification, protein synthesis, and the production of biochemicals necessary for digestion.

Gallbladder

A small, pear-shaped organ located beneath the liver, storing and concentrating bile produced by the liver before releasing it into the small intestine.

Glycogen

A multi-branched polysaccharide of glucose that serves as a form of energy storage in animals, fungi, and bacteria.