'Factoring' Is One Method of Using Accounts Receivable as Security

question 33

Multiple Choice

'Factoring' is one method of using accounts receivable as security over a loan.This occurs when:

• A) a financial institution loans cash to an entity by acquiring 70 - 75% of an entity's accounts receivable.
• B) a financial institution loans cash to an entity with the entity guaranteeing the money it receives from specific debtors will be used to repay the loan.
• C) a financial institution loans cash to an entity by 'buying' the accounts receivable and obtaining the right to collect the accounts directly from the entity's debtors.
• D) None of these options is correct.

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Definitions:

DSM-5

The fifth edition of the Diagnostic and Statistical Manual of Mental Disorders, a handbook used by healthcare professionals as a guide to diagnose mental disorders.

Field Trials

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Psychological Disorders

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The extent to which different diagnostic tools or health professionals reach the same conclusion when assessing the same condition or symptoms in a patient.