MNCs can use ____ to sell their existing accounts receivable as a means of obtaining cash.

Question

​MNCs can use ____ to sell their existing accounts receivable as a means of obtaining cash.

Quizplus · Accepted Answer

Factoring involves selling accounts receivable to a third-party financial company (factor) at a discount, allowing the MNC to receive immediate cash. This is a common method used by MNCs to manage their cash flow and obtain short-term financing. The other options listed (bill of lading, banker's acceptance, letter of credit) are not directly related to the sale of accounts receivable for cash.

​MNCs Can Use ____ to Sell Their Existing Accounts Receivable

MNCs Can Use ____ to Sell Their Existing Accounts Receivable