The Factoring of Receivables

question 64

Multiple Choice

The factoring of receivables:

• A)had its origins in the textile industry but now extends over a wide range of industriestypically has the factor becoming the firm's credit department
• B)is especially suited to the heavy durable goods industries
• C)has now been largely replaced with other types of financing
• D)places special risk on the firm whose receivables are being factored

---

Definitions:

Function

An action or activity assigned to or expected from a person or thing.

Epidermis

The outermost layer of the skin, serving as a protective barrier against environmental hazards.

Lamellated Corpuscle

A nerve ending found in the skin and other tissues that is sensitive to pressure and vibration, also known as a Pacinian corpuscle.

Arrector Pili Muscle

A small muscle attached to hair follicles in mammals, responsible for causing hairs to stand up when the organism is cold or frightened.