Factoring Involves the Lender Buying the Accounts Receivable Assets of the Borrowing

question 23

Multiple Choice

Factoring involves the lender buying the accounts receivable assets of the borrowing company at a discount to their face value.If the factoring company can recover future bad debt from the borrowing company,this is called:

• A)a disintermediated type of factoring
• B)conventional factoring
• C)assignment of receivables
• D)factoring on a notification basis
• E)unconventional factoring

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Definitions:

Peak Periods

Refers to times of highest demand or activity within a business or market sector, often requiring increased resources or capacity.

Off-Peak Periods

Times when demand for a service or product is lower, often leading to reduced prices or rates to encourage usage or purchase during these times.

Demand Shift

A change in consumers' desire to purchase goods or services, influenced by factors like price changes, seasonal trends, or evolving preferences.

Static Pricing

A pricing strategy where the price of a product or service is fixed and does not change in response to market fluctuations or consumer demand variations.