Factoring Is a Form of Short-Term Financing Which Involves [Blank]

question 4

Multiple Choice

Factoring is a form of short-term financing which involves [blank].

• A)actually selling accounts receivable to a financial institution at a discount from face value
• B)pledging accounts receivable as collateral for a short-term loan
• C)using a percentage of current assets as collateral for a short-term loan
• D)selling inventory to a factor with an agreement to repurchase it at a set time in the future

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Definitions:

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow, categorizing human needs into five levels from basic (such as physiological needs) to higher order (self-actualization).

Physiological Needs

The most basic human needs to be satisfied—water, food, shelter, and clothing.