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:

Linear

Pertaining to or resembling a line, especially in relation to attributes like growth or decline that occur in a straight or nearly straight fashion.

Moderate

Of average intensity or quality; neither good nor bad.

Grade Point Average

An average of a student's grades, calculated on a numeric scale, typically ranging from 0 to 4 or 5.

Height

The measurement of someone or something from base to top or head to foot in a vertical direction.