If a Company Decides to Factor Its Receivables Without Recourse

question 129

Multiple Choice

If a company decides to factor its receivables without recourse, it will:

• A)offer the receivables to a lending institution as collateral.
• B)sell receivables to a lender and remain liable for uncollectible accounts.
• C)sell the receivables at a discount.
• D)offer receivables that are more than 120 days old to a collection agency.
• E)none of the above defines factoring receivables.

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Definitions:

Isotactic

Referring to a configuration in polymers where all substituents on the polymer chain are arranged on the same side.

Atactic

Refers to polymers where the configuration of chiral centers is random.

Highly Branched

Refers to a molecule or polymer with numerous branches or side chains, significantly affecting its physical and chemical properties.

Amorphous

Lacking a definite shape or form; in materials science, referring to a solid that does not possess the long-range order characteristic of crystals.