Which of the Following Statements Is False

question 29

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:

Kickstarter

A crowdfunding platform that allows individuals and startups to raise funds for creative projects and innovations.

Funds

Monetary resources allocated for a specific purpose or project.

Kickstarter

A crowdfunding platform that allows individuals and companies to raise funds for creative projects and innovative products through public contributions.

Excess Funds

Refers to the amount of money available beyond what is necessary to cover expenses or requirements.