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:

Margin Of Error

An expression of the amount of random sampling error in a survey's results, representing the extent to which the sample results might differ from those of the actual population.

Confidence Interval

A range of values, derived from the sample data, within which we can say with a certain level of confidence that the true population parameter lies.

Sample Size

The number of observations or subjects used in a study or experiment, critical for determining the study's reliability and representativeness.

Population Deviation

Refers to the measure of dispersion from the mean in a population data set, indicating the average distance from the mean for all population values.