Which of the Following Statements About Factoring Is True

question 96

Multiple Choice

Which of the following statements about factoring is true?

• A) The firm, not the factor, bears the risk of collecting bad receivables in a factoring arrangement.
• B) Factoring involves the outright sale of a firm's accounts receivable to the factor.
• C) The borrowing firm is able to obtain a greater advance against inventory in a factoring arrangement than in a typical line of credit secured by accounts receivable.
• D) Factoring firms sell the receivables of other firms.

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Definitions:

Maturation Effects

Changes in participants over time that are not due to the experimental manipulation but rather to natural development or aging.

One-group Pretest-posttest Design

A research design in which a single group is measured or tested before and after an intervention to assess change.

Participants Change

The phenomenon where individuals in a study alter their behavior or responses due to awareness of being observed or other study factors.

Time

A continuous sequence of events, perceived by its passage and measurable in hours, minutes, and seconds.