Which of the Following Is NOT a Difference Between Factoring

question 9

Multiple Choice

Which of the following is NOT a difference between factoring and securitization of receivables?

• A) In securitization, many investors are involved, whereas factoring usually involves only one company.
• B) Receivables are derecognized when securitized, but not when factored.
• C) The quality of receivables factored tends to be lower than those securitized.
• D) The seller retains responsibility to collect amounts due when securitized, but not when factored.