When a Firm Sells Its Accounts Receivables to a Financial

question 53

Multiple Choice

When a firm sells its accounts receivables to a financial institution, it is called:

• A)captive financing.
• B)collateralization.
• C)securitization.
• D)legalization.
• E)None of the above.

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Definitions:

Habituation

The process by which there is a decrease in response to a stimulus after being repeatedly exposed to it.

Attention Recovery

The process of regaining concentration and focus on a task or environment after being distracted or disengaged.

Visual-recognition Memory

The ability to recognize previously encountered objects, symbols, or individuals by sight.

Habituation

The process of becoming accustomed to a stimulus through repeated exposure, leading to a decrease in response.