Which of the Following Is NOT a Characteristic of Factoring

question 39

Multiple Choice

Which of the following is NOT a characteristic of factoring accounts receivable?

• A)A firm sells its accounts receivable to a finance company.
• B)Receivables are sold without recourse.
• C)The firm incurs any losses from nonpayment.
• D)Maturity factoring and advance factoring are the two basic ways of financing.

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Definitions:

Connective Tissues

Types of tissue in the body that maintain the form of organs and provide cohesion and internal support.

Muscles

Tissues in the body that contract to produce movement or maintain the position of parts of the body.

Ligaments

Strong, flexible connective tissue bands that connect bones to other bones, providing joint stability.

Tendons

Fibrous connective tissues that attach muscles to bones.