Which of the Following Statements Is FALSE

question 17

Multiple Choice

Which of the following statements is FALSE?

• A)If a factoring arrangement is with recourse,the factor will pay the firm the amount due regardless of whether the factor receives payment from the firm's customers.
• B)In a factoring of accounts receivable arrangement,the firm sells receivables to the lender (i.e. ,the factor),and the lender agrees to pay the firm the amount due from its customers at the end of the firm's payment period.
• C)Businesses can also obtain short-term financing by using secured loans,which are loans collateralized with short-term assets-most typically the firm's accounts receivables or inventory.
• D)Both the interest rate and the factor's fee vary depending on such issues as the size of the borrowing firm and the dollar volume of its receivables.

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Definitions:

Viability

The ability to work successfully or live and grow under certain conditions.

Stimulus-Response Connections

The association between a specific stimulus and a particular response, fundamental to classical and operant conditioning theories.

Information Processing

The method by which individuals intake, analyze, store, and retrieve information, drawing parallels to computer processing.

Drives

Biological needs that motivate an organism to fulfill them, such as hunger, thirst, or the need for warmth.