The Pledging Cost of Accounts Receivable Is Normally 1 to 4

question 42

True/False

The pledging cost of accounts receivable is normally 1 to 4 percent above the prime rate.

---

Definitions:

Formal Grievance Procedure

A systematic process provided by employers for employees to formally raise and resolve workplace disputes or complaints.

Market Penetration Rate

A measure used to determine the extent to which a product or service is known and used by customers within a particular market.

Videoconference

A technology that allows people in different locations to hold face-to-face meetings without having to move to a single location physically.

Broadband Internet

A high-speed internet connection that is always on and faster than the traditional dial-up access. It includes several high-speed transmission technologies such as DSL, cable modem, fiber, and satellite.