A routine condition which could cause an entrepreneur to regularly factor his/her accounts receivables could be ____
A) To buy out an existing partner's equity
B) To compensate for large, predictable, fluctuations in seasonal demand.
C) To reduce current assets on the balance sheet
D) None of the above.

Question

Quizplus · Accepted Answer

Factoring accounts receivables is often used by businesses to manage cash flow, especially in industries with large, predictable, seasonal fluctuations in demand. This provides the business with immediate cash to meet operational needs during peak seasons.

A Routine Condition Which Could Cause an Entrepreneur to Regularly