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:

Appointed

Assigned to a position or role, often officially or by authority.

Internet Business

A business that operates primarily online, utilizing digital platforms and technologies for selling goods, delivering services, and interacting with customers.

Substantial Business

A business operation of significant size or importance, often involving considerable amounts of capital, employees, or market presence.

Passive Advertising

A marketing strategy that focuses on being present where potential customers are, without direct engagement, relying on visual or ambient methods to generate interest.