Factoring

question 3

Multiple Choice

Factoring:

• A)is a more expensive method of financing than borrowing from a bank.
• B)places the risk of uncollected accounts receivable on the small business owner.
• C)is best used as a long-term source of capital.
• D)is a type of trade credit.

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Definitions:

Hematocrit

The ratio of the volume of red blood cells to the total volume of blood.

Megakaryocyte

A large bone marrow cell responsible for the production of blood thrombocytes (platelets), which are critical in blood clotting.

Thrombocyte

Another term for platelet, a cell fragment in the blood essential for clotting and wound repair.

Erythrocyte

A red blood cell that carries oxygen from the lungs to the body's tissues and returns carbon dioxide from the tissues back to the lungs.