What Do We Know About Best Practices for Effective Prevention

question 51

Essay

What do we know about best practices for effective prevention programs ? Pick one of the programs discussed in detail in chapters 9 and 10 and describe how that program utilizes best practices.

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Definitions:

Pledging Accounts Receivable

Using accounts receivable as collateral to secure a loan.

Factoring

A financial transaction where a business sells its accounts receivable to a third party at a discount in exchange for immediate cash.

Recourse

In secured lending, if the asset collateralizing a loan proves not to have the value anticipated, recourse implies the borrower is still responsible for the debt. The lender is said to have recourse to the borrower.

Seasonal Working Capital

Additional working capital needed to support fluctuations in business activity due to seasonal changes in demand.