In a Factoring of Accounts Receivable with Recourse,which Party Bears

question 61

Multiple Choice

In a factoring of accounts receivable with recourse,which party bears (indicated by * in the answer alternatives) the cost of bad debts and sales adjustments? $$\begin{array} { | c | c | c | } \hline & \text { Bad debts } & \text { Sales adjustments } \\\hline 1 \text { Transferor } & * & * \\\hline 2 \text { Factor } & & * \\\hline \text { Transferor } & & * \\\hline \text { 3 Factor } & * & \\\hline \text { Transferor } & * & \\\hline \text { 4 Factor } & * & \\\hline\end{array}$$

• A)Choice 1
• B)Choice 2
• C)Choice 3
• D)Choice 4

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Definitions:

Cultural Differences

Variations in the practices, values, and norms of behavior across different groups, societies, or countries that can affect interpersonal interactions and business practices.

Purchase Decisions

The process through which consumers decide whether to buy a product or service, influenced by various internal and external factors.

Minority Groups

Groups in a society distinguished by cultural, ethnic, racial, or religious identity that have less power or representation compared to the dominant group.

Inflation Rate

The percentage increase in the general price level of goods and services in an economy over a period of time.