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.

---

Definitions:

Statistical Techniques

Methods or procedures used to collect, analyze, interpret, and present data.

Normal Distributions

A bell-shaped distribution that is symmetric about the mean, indicating that data near the mean are more frequent in occurrence than data far from the mean.

Standard Deviation

A measure of the dispersion or variability within a set of data points, representing how spread out the values are from the mean.

Z-Score

Scores for the standard normal distribution measured in standard deviation units.