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:

Observable Events

Phenomena or occurrences that can be seen and measured directly by the observer in research or studies.

Consciousness Elements

Fundamental components that make up the state of being aware of and able to think about one's own existence, sensations, and thoughts.

Psychoanalysis

Psychoanalysis is a therapeutic approach and theory of personality developed by Sigmund Freud, emphasizing unconscious motives and conflicts as drivers of human behavior.

Experimental Research

A research methodology that seeks to determine cause-and-effect relationships by manipulating one variable and observing the effects on another.