To Reduce the Cost of Collecting Its Accounts Receivable, a Company

question 24

Multiple Choice

To reduce the cost of collecting its accounts receivable, a company sells its accounts receivable to a financial organization. The service is called:

• A) collection agency advance
• B) lock-boxing
• C) Factoring
• D) Funding

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Definitions:

Challenge for Cause

The legal right in jury selection for the defense or prosecution to request the removal of a juror based on specified reasons that suggest partiality or incompetence.

Jury Selection

The process of choosing jurors who will serve on a trial jury from a pool of candidates.

Minitrial

A type of conflict resolution in which lawyers for each side present their arguments to a neutral adviser, who then offers an opinion as to what the verdict would be if the case went to trial. This decision is not binding.

Neutral Third Party

An impartial person or entity involved in a conflict or negotiation to facilitate a resolution without bias.