The Process of Selling Receivable for an Amount Less Than

question 2

Multiple Choice

The process of selling receivable for an amount less than the face value of the receivable is called:

• A)factoring.
• B)securitizing.
• C)receivables financing.
• D)recapitalizing.

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Definitions:

FOB Shipping Point Pricing

A term in shipping where the buyer is responsible for the goods once they leave the seller’s premises, including paying for shipping and handling.

Corporate Customers

Businesses or organizations that purchase a company's products or services, often in bulk or on a contractual basis.

Luxury Food

High-quality, often expensive food items that are considered rare or indulgent, typically consumed as a sign of wealth or for special occasions.

Net 30

A payment term indicating that the full payment is due 30 days from the invoice date or delivery of service/product.