Selling the Rights to Collect Accounts Receivable to an Entity

question 72

Multiple Choice

Selling the rights to collect accounts receivable to an entity outside the business is called _____.

• A) factoring
• B) pledging
• C) reconciling
• D) outsourcing

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Definitions:

Altruism

The selfless concern for the well-being of others.

Effectiveness

The degree to which an action achieves its intended outcome or results successfully.

Persuade

To convince someone to do or believe something through reasoning or argument.

Ethical Dilemmas

Situations in which a choice must be made between two or more morally conflicting options, with no clear right or wrong answer.