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:

Deltoid

A large, triangular-shaped muscle covering the shoulder joint that is responsible for rotating and lifting the arm.

Phrenic Nerve

A nerve that originates in the neck and passes down between the lung and heart to reach the diaphragm, crucial for breathing as it controls the diaphragm's movements.

Rectus Abdominus

A long muscle running from the pubis to the ribcage, involved in flexing the lumbar spine and stabilizing the pelvis and core.

Pectoralis Minor

A thin, triangular muscle located beneath the pectoralis major, involved in movements of the shoulder blade, including drawing it downward and forward.