Wilbur is attempting to raise some quick cash for his business by selling its accounts receivable to a finance company, this is called
A) selling short.
B) factoring.
C) mortgaging the future.
D) pledging receivables.

Question

Quizplus · Accepted Answer

The process described is factoring, which involves selling accounts receivable to a finance company in exchange for immediate cash. This can be useful for businesses that need to increase their cash flow quickly. Selling short refers to a stock market strategy, mortgaging the future involves taking on debt, and pledging receivables is similar to factoring but involves using the receivables as collateral for a loan rather than selling them outright.

Wilbur Is Attempting to Raise Some Quick Cash for His