The Primary Advantage That Pledging Accounts Receivable Provides Is

question 99

Multiple Choice

The primary advantage that pledging accounts receivable provides is

• A) the flexibility it gives to the borrower.
• B) that the financial institution bears the risk of collection.
• C) the low cost as compared with other sources of short-term financing.
• D) that the financial institution services the accounts.

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Definitions:

Stable

Characterized by consistency, resilience, or lack of significant change over time.

Depressed

Depressed refers to a state of low mood and aversion to activity that can affect a person's thoughts, behavior, feelings, and sense of well-being, commonly associated with depression.

Stable Attribution

The assumption that the factors that resulted in a particular outcome will not change.

Successes

are achieved outcomes or accomplishments that meet desired goals or criteria.