Which of the Following Statements Is FALSE

question 17

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:

Exposure Therapy

A psychological treatment method that involves confronting feared or traumatic memories, objects, or situations directly to reduce their associated anxiety.

Obsessive-Compulsive Disorder

A psychiatric condition marked by persistent, intrusive thoughts (obsessions) and repetitive actions (compulsions).

Systematic Desensitization

A behavioral therapy technique used to gradually reduce anxiety or phobia by having the patient confront a feared object or context in a controlled manner.

Shaping

A behavior modification technique involving the reinforcement of closer approximations of a desired behavior until the exact behavior is achieved.