Identify a Characteristic of Factoring as a Form of Accounts

question 45

Multiple Choice

Identify a characteristic of factoring as a form of accounts receivable financing.

• A) It is an inexpensive method of financing.
• B) It quickly turns receivables into cash.
• C) It ensures that there is no interest charged for money advanced.
• D) It imposes on its users a credit agency fee.

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Definitions:

Charisma

A personal quality that gives an individual influence or authority over large numbers of people, often resulting in a strong, almost magnetic, personal appeal.

Stability

The state of being resistant to change and not prone to wild fluctuations in emotion or other areas of life.

Intemperance

Excessive or immoderate indulgence in something, commonly used in the context of substance use.

Callousness

The quality of being emotionally hardened and showing a lack of empathy.