Examlex
Which of the following best describes the agreement where a firm sells receivables to a lender and the lender agrees to pay the firm the amount due from its customers at the end of the firm's payment period,and where the lender's claim on the borrower's assets in the event of default is limited only to explicitly pledged collateral?
Market Price
The market's ongoing price for an asset or service available for sale or purchase.
Firm's Bonds
Long-term debt securities issued by a corporation to finance its projects and operations, typically offering regular interest payments to the holder.
Depreciation Tax Deduction
A tax deduction allowing businesses to write off the loss of value of tangible assets over their useful lives, reducing taxable income.
Interest Tax Shield
The savings in taxes achieved by deducting interest payments on debt from taxable income.
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