Which Statement Is Not Correct

question 43

Multiple Choice

Which statement is not correct?

• A)Factoring with recourse creates a liability on the balance sheet.
• B)Factoring with recourse creates a receivable on the balance sheet.
• C)Factoring without recourse negatively impacts working capital.
• D)Factoring without recourse means that the seller takes the collection risk.

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Definitions:

Victor Vroom

Victor Vroom is known for his work on expectancy theory, which suggests that individual motivation is influenced by expected outcomes and the value placed on those outcomes.

Expectancy Theory

A motivational theory suggesting that individuals are motivated to perform or behave in a certain way if they believe that their actions will lead to a desired outcome.

Employee Motivation

The array of internal and external factors that stimulate workers to take actions towards achieving personal and organizational goals.

Frederick Herzberg

An American psychologist famous for introducing the two-factor theory of motivation, identifying factors that cause job satisfaction and dissatisfaction.