Factoring Accounts Receivable Is a Relatively Inexpensive Source of Unsecured

question 7

True/False

Factoring accounts receivable is a relatively inexpensive source of unsecured short-term funds that allows firms to turn accounts receivable immediately into cash.

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Definitions:

Continental Rifting

The process where a continental landmass breaks apart due to tectonic forces, often leading to the formation of new ocean basins.

Continent Intact

This term is unclear but may refer to a continent remaining geologically stable or undivided by significant natural events over time.

Continental Rift

A linear zone where the Earth's crust and lithosphere are being pulled apart and is the initial stage of a continental break-up leading to the formation of a new ocean basin.

Divergent Boundary

A tectonic plate boundary where two plates move away from each other, leading to the formation of new crust as magma rises to the surface.