When Accounts Receivable Are Pledged as Collateral Rather Than Factored

question 243

True/False

When accounts receivable are pledged as collateral rather than factored, the lender assumes the default risk on the receivables.

---

Definitions:

Sustainable Consumer Behavior

Sustainable consumer behavior refers to purchasing habits and usage patterns that prioritize the conservation of resources, reduction of environmental impact, and support for social equity and ethical practices.

Ethical Way

A manner of conducting actions and making decisions that align with moral principles and values, ensuring fairness, integrity, and respect.

Highest Quality

Highest Quality signifies products, services, or processes that meet or exceed established standards of excellence, often differentiated by superior materials, craftsmanship, or performance attributes.

Sustainable Consumer Behavior

Shopping and consumption habits that are mindful of environmental impact, aiming to minimize waste and reduce carbon footprint.