Consider an Exporter That Sells Its Accounts Receivables Off to Another

question 35

Multiple Choice

Consider an exporter that sells its accounts receivables off to another firm that becomes responsible for obtaining cash from the various importers. This reflects:

• A) accounts receivable financing.
• B) consignment.
• C) factoring.
• D) a letter of credit.

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Definitions:

Atomic Number

A fundamental characteristic of an element, indicating the number of protons in the nucleus of its atoms.

Avogadro's Number

A constant that represents the number of constituent particles, usually atoms or molecules, that are contained in one mole of a substance, approximately \(6.022 \times 10^{23}\).

Carbon-12

A stable isotope of carbon with 6 protons and 6 neutrons, serving as the standard for atomic mass among elements.

Atoms

The basic units of matter, consisting of a nucleus surrounded by electrons.