When a Company Factors Its Accounts Receivable, It

question 46

Multiple Choice

When a company factors its accounts receivable, it

• A) enters into a lending agreement with the institution to receive cash on specific customer accounts.
• B) sells individual accounts to a financial institution.
• C) uses these accounts only as a collateral for a loan.
• D) transfers the accounts but retains title of the accounts until the loan is paid.

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Definitions:

External Marketing Environment

External factors and influences that impact a company's marketing strategy, including economic, political, social, and technological aspects.

Industry Analysis

An assessment that examines the market dynamics, competitors, and economic environment of a specific sector to understand its profitability and competitiveness.

Strategic Moves

Actions taken by a company to enhance its competitive position within the market.

Product Life Cycle

The series of stages a product goes through from introduction to growth, maturity, and decline as it exists in the market.