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Which of the following statements about factoring is true?

borteleto

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Which of the following statements about factoring is true?

Which of the following statements about factoring is true?
A) The firm, not the factor, bears the risk of collecting bad receivables in a factoring arrangement.
B) Factoring involves the outright sale of a firm's accounts receivable to the factor.
C) The borrowing firm is able to obtain a greater advance against inventory in a factoring arrangement than in a typical line of credit secured by accounts receivable.
D) Factoring firms sell the receivables of other firms.

Textbook

Foundations of Finance

Foundations of Finance

Edition: 9^th

Authors: Keown, Petty, Martin

Read 236 times

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guzman

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Anthony W.

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#2

4 years ago

thanks

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