A Small Business That Uses Factoring

question 136

Multiple Choice

A small business that uses factoring:

• A)pledges its accounts receivable as collateral to obtain a loan from a financial institution.
• B)relies on a third-party consultant to apply for SBA-guaranteed loans.
• C)sells its accounts receivable to a third party to get the capital it needs.
• D)borrows money from lenders by offering them the option to convert the loan into stock in the company.

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Definitions:

Intentional

Pertaining to actions, thoughts, or behaviors that are done with purpose or deliberation.

Inappropriate

Actions or behaviors that are not suitable or proper in a given context or situation, often violating social norms or expectations.

Empathic Responses

Reactions or responses that show an understanding of and sensitivity to another person's feelings or experiences.

Advanced

A term indicating a higher level of complexity, skill, or understanding in a particular area or field.