Tommy Thompson has a small mail order business. He wants to borrow $10,000 from his friend Ziggy Harris. Tommy says that he will give Ziggy the right to collect on accounts customers owe him. What is the arrangement called?

Question

Quizplus · Accepted Answer

An assignment of accounts receivable is when a business owner transfers the right to collect money owed by customers to another party, often as collateral for a loan.

Tommy Thompson Has a Small Mail Order Business