Factoring Involves

question 29

Multiple Choice

Factoring involves

• A)making loans to customers that depository institutions find too risky to lend.
• B)providing financing for the purchase of products manufactured by the parent company.
• C)approving of collateral that depository institutions do not find acceptable.
• D)providing financing through equipment leasing.
• E)purchasing of accounts receivable by finance company from corporate customers.

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Definitions:

Luxury Automobile Limitations

Tax rules that cap the amount of depreciation or lease inclusion that can be deducted for high-cost vehicles.

Passenger Autos

Vehicles designed for personal use, including cars, vans, and some light trucks.

Section 179

A tax code provision allowing businesses to deduct the full purchase price of qualifying equipment or software within the tax year.

Schedule C

A tax form used by sole proprietors to report profits or losses from a business.