Management Will Often Resist a Going-Concern Modification Because Investors,lenders,and Customers

question 112

True/False

Management will often resist a going-concern modification because investors,lenders,and customers may lose faith in the business.

---

Definitions:

Accounts Receivable Financing

A type of financing arrangement wherein a business uses its outstanding invoices as collateral to receive immediate funds from a lender.

Secured Short-Term Loan

A loan that is backed by collateral and has a maturity period of one year or less.

Assignment

The transfer of rights, property, or responsibilities from one party to another.

Factoring Of Receivables

The sale of a business's accounts receivable to a third party, at a discount, for immediate cash.