Concerning Factoring, All of the Following Are True Except

question 19

Multiple Choice

Concerning factoring, all of the following are true except:

• A) factors prefer business over consumer accounts
• B) factoring is done at a discount to the third party purchaser
• C) factoring discounts are often a function of the riskiness of the receivables
• D) factoring speeds the inflow of cash to the seller of the receivables
• E) receivable lending is the process of factoring

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Definitions:

Kellogg

A multinational food manufacturing company known for its cereal and convenience foods.

Sequence

A particular order in which related events, movements, or things follow each other.

Stages

Distinct periods in the development of an individual characterized by specific features, capabilities, or patterns of behavior.

Drawing

The act or skill of producing images on a surface, typically paper, by making marks, usually with a pen, pencil, or crayon.