The Reasons Why a Company May Choose to Pledge Accounts

question 80

Multiple Choice

The reasons why a company may choose to pledge accounts receivable are all of the following except:

• A) lower interest rate
• B) borrowing capacity fluctuates with A/R
• C) provides another source of financing for companies with lower credit ratings
• D) all of these are reasons for pledging accounts receivable

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Definitions:

Completed Suicide Rate

A statistical measure reflecting the number of deaths due to suicide per unit of population over a specific time period.

Males

Refers to the biological sex that produces spermatozoa for reproduction, typically characterized by XY chromosomes in humans.

Females

Typically refers to individuals of the human species who are biologically characterized by two X chromosomes, but the term is also relevant in understanding gender as a social construct.

Law-breaking Behaviors

Actions that violate the law, ranging from minor violations to significant offenses, often subject to legal punishment.