What Purpose Is Served by a Factoring Arrangement? What Does

question 6

Essay

What purpose is served by a factoring arrangement? What does it mean to factor accounts receivable with recourse?

---

Definitions:

Federal Government

The national government of a federal country that shares power with states or provinces but has authority in matters of national concern.

Subject to Taxation

Describes income, goods, property, and other financial transactions that are considered taxable by the government.

Manufacturing Plant

A manufacturing plant is a large industrial facility where goods are produced through the combination of labor, machines, and processing of raw materials.

Certificate of Authority

A document issued by a state government granting a foreign business entity permission to conduct business in that state.