Factoring Occurs When a Business Sells Its Receivables to a Finance

question 70

True/False

Factoring occurs when a business sells its receivables to a finance company or bank.

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Definitions:

Corporate Mission Statement

A concise expression of a company's purpose, identifying its scope of operations and guiding its strategic decisions and direction.

Long-term Profits

The amount of net income expected to be generated over an extended period, reflecting the financial health and sustainability of a business.

Core Purpose

The fundamental reason a company exists beyond just making money, often reflecting its values and mission.

External Stakeholder

Individuals or entities outside of a company that have an interest or concern in the business operations, such as customers, suppliers, and the community.