In Order to Keep Receivables Low and Receivable Turnover High

question 1

Multiple Choice

In order to keep receivables low and receivable turnover high, companies can sell their receivables to:

• A)a subsidiary.
• B)a factor.
• C)a receiver.
• D)none of the above.

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Definitions:

Acetone

A volatile, flammable, and colorless liquid ketone, often used as a solvent in the manufacture of plastics and other industrial products, as well as a nail polish remover.

Tetrahedral Geometry

A shape formed when a central atom is surrounded by four atoms at the corners of a tetrahedron.

Phenol

An organic compound consisting of a benzene ring bonded to a hydroxyl group, used in the manufacture of plastics and pharmaceuticals.

Tetrahedral Geometry

Tetrahedral geometry describes a molecular shape where a central atom is bonded to four other atoms, all at the corners of a tetrahedron, with bond angles of approximately 109.5°.