When a Business Factors Its Accounts Receivables,the Business ________

question 87

Multiple Choice

When a business factors its accounts receivables,the business ________.

• A) uses the receivables as security for a loan
• B) no longer has to deal with the collection of the receivables from the customers
• C) receives the total amount of the receivables from the factor
• D) receives cash, less an applicable fee, after the factor collects from the customers

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Definitions:

Postconventional

A stage of moral development where individuals make ethical choices based on universal ethical principles and internalized values.

Moral Development

The process through which individuals develop proper attitudes and behaviors toward other people in society, based on social and cultural norms, laws, and personal beliefs.

Preconventional

The first level in Kohlberg's theory of moral development, where moral reasoning is based on individual needs and concrete rewards and punishments.

Conventional Role

Societal norms that dictate the expected behaviors, duties, and responsibilities of individuals based on their social or demographic characteristics, such as gender or age.