Which of the Following Is NOT a Characteristic of Factoring

question 39

Multiple Choice

Which of the following is NOT a characteristic of factoring accounts receivable?

• A)A firm sells its accounts receivable to a finance company.
• B)Receivables are sold without recourse.
• C)The firm incurs any losses from nonpayment.
• D)Maturity factoring and advance factoring are the two basic ways of financing.

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Definitions:

Evaluating Results

The process of analyzing the outcomes of actions or decisions to determine their effectiveness and learn from them.

Communication System

A structure of methods or processes by which information is transmitted and received between individuals or entities.

Project Management

The process of starting, organizing, implementing, managing, and concluding a team's tasks to attain certain objectives and fulfill defined criteria for success.

Establishing Checkpoints

The act of setting specific points or milestones in a project or plan to review progress and make necessary adjustments.