The Primary Advantage That Factoring Accounts Receivable Provides Is

question 36

Multiple Choice

The primary advantage that factoring accounts receivable provides is

• A) the flexibility it gives to the borrower.
• B) that the financial institution bears the risk of collection.
• C) the low cost as compared with other sources of short-term financing.
• D) that the financial institution services the accounts.

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Definitions:

Food Stamps

A government-provided voucher program, now commonly known as the Supplemental Nutrition Assistance Program (SNAP), designed to help low-income individuals and families afford food.

Contributory

Relating to or involving contributions; in the context of social security or insurance, it refers to systems where benefits are contingent upon the beneficiary's prior contributions.

Noncontributory

A social welfare program that does not require participants to have contributed to a specific fund in order to receive benefits from it.

Welfare

Government programs designed to assist individuals and families in meeting their basic needs, such as food, housing, and healthcare, often aimed at those living in poverty.