Which of the Following Statements Is FALSE

question 17

Multiple Choice

Which of the following statements is FALSE?

• A)If a factoring arrangement is with recourse,the factor will pay the firm the amount due regardless of whether the factor receives payment from the firm's customers.
• B)In a factoring of accounts receivable arrangement,the firm sells receivables to the lender (i.e. ,the factor),and the lender agrees to pay the firm the amount due from its customers at the end of the firm's payment period.
• C)Businesses can also obtain short-term financing by using secured loans,which are loans collateralized with short-term assets-most typically the firm's accounts receivables or inventory.
• D)Both the interest rate and the factor's fee vary depending on such issues as the size of the borrowing firm and the dollar volume of its receivables.

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Definitions:

Rationale Behind

The rationale behind refers to the underlying reasons or logic for a specific decision, action, or belief.

Identical Elements

Identical elements is a theory that suggests the transfer of learning depends upon the similarity between the training situation and the new situation.

Vertical Transfer

The process of transferring skills, knowledge, or information from one level of an organization to another, often from higher levels to lower ones.

Horizontal Transfer

The process in which an employee moves to a different job at the same level of hierarchy in an organization, often to gain varied experience or utilize different skills.