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:

De Facto Corporation

A business that operates as a corporation without formal legal acknowledgment but is treated as such for some purposes.

Corporation's Bylaws

The written rules for conduct of a corporation, detailing the rights and obligations of the directors, officers, and shareholders.

Perpetrate A Fraud

The act of intentionally deceiving someone or a group in order to gain an unfair or illegal advantage, often financial.

Personally Liable

A legal term referring to an individual's responsibility to settle a debt or legal judgment from their personal assets.