The Form of Short-Term Finance Where Another Entity Takes Over

question 59

Multiple Choice

The form of short-term finance where another entity takes over the firm's debtors' accounts for a payment of around 85% of the accounts balance is known as:

• A)bills receivable.
• B)discounting.
• C)debt factoring.
• D)none of the above.

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Definitions:

Average Total Cost

The total cost of production (fixed plus variable costs) divided by the number of units produced, indicating the cost per unit of output.

Pure Monopolist

A market structure in which a single seller dominates the entire market, facing no competition.

Profit-Maximizing Output

The level of production at which a company can achieve the highest possible profit, usually determined by marginal cost and marginal revenue analysis.

Nondiscriminating Monopolist

A monopolist that charges all consumers the same price for its product, without price discrimination.