Factoring Accounts Receivable Is Relatively an Expensive Source of Secured

question 39

True/False

Factoring accounts receivable is relatively an expensive source of secured short-term funds that allows firms to turn accounts receivable immediately into cash.

---

Definitions:

Effectiveness-oriented Metric

A measure used to evaluate how well a process or activity reaches its intended outcome or goal.

Customer Satisfaction

The measure of how products or services supplied by a company meet or surpass customer expectations.

Operating Cost

Expenses associated with the day-to-day operations of a business, including salaries, utilities, and rent.

Purchase Order

A formal document issued by a buyer to a seller, detailing the products, quantities, and agreed prices for products or services.