Many Small Businesses Rely on Factoring as a Source of Short-Term

question 214

Multiple Choice

Many small businesses rely on factoring as a source of short-term financing because

• A) factoring provides a much cheaper source of funds than bank loans.
• B) interest paid to a factor qualifies for a tax credit.
• C) small firms often find it difficult to qualify for bank loans.
• D) loans provided by factors do not require collateral.

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Definitions:

Transcription

The process by which the genetic information in a strand of DNA is copied into a new molecule of messenger RNA (mRNA).

mRNA

Messenger RNA, a type of RNA that is transcribed from DNA and carries instructions for synthesizing proteins to the ribosomes.

Ribosome

Ribosomes are molecular machines within cells that synthesize proteins by translating messenger RNA into polypeptide chains, essential for all cellular functions.

Polypeptide Chain

A long, continuous, and unbranched chain of amino acids linked by peptide bonds that forms part of the structure of proteins.