Which of the Following Is a Disadvantage of Factoring

question 42

Multiple Choice

Which of the following is a disadvantage of factoring?

• A) ensures an uneven pattern of cash flows
• B) eliminates credit and collection departments
• C) turns accounts receivable into cash quickly
• D) highly expensive source of short-term financing

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Definitions:

Friedel-Crafts Acylation

A chemical reaction that introduces an acyl group into an aromatic ring, facilitated by a Lewis acid catalyst.

Polyacylation

Polyacylation is a chemical process involving the repeated addition of acyl groups to a compound, typically used in organic synthesis to modify the properties of chemicals.

Resonance Form

An alternative structure of a molecule or ion that differs only in the distribution of electrons, equivalent to a resonance structure.

Directing Effect

Describes how substituents on an aromatic ring influence the position of additional substituents in electrophilic aromatic substitution reactions.