Which of the Following Is NOT an Advantage of Factoring

question 8

Multiple Choice

Which of the following is NOT an advantage of factoring?

• A) Known cash flows are generated
• B) Accounts receivable is turned into cash without delay
• C) The credit and collection department of a company may be eliminated
• D) The cost of financing is relatively high

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Definitions:

Family Cash Investments

Funds invested by family members in a business or venture, often characterized by a more personal or relational investment criteria.

Transgenerational Entrepreneurship

Entrepreneurial activities and mindsets that are passed down through family generations, involving succession in family businesses.

Formal Approach

pertains to methodical, structured procedures or methods applied in various fields such as research, business, or problem-solving.

Managerial Methods

Techniques and strategies employed by managers to achieve organizational objectives effectively and efficiently.