Why is accounts receivable financing NOT a costless transaction for a firm?
A) The receivables must be sold at a discount.
B) The receivables are used as collateral, making them less valuable.
C) The receivables must now be shown as a liability on the firm's books.
D) Customers do not like it and sometimes take their business elsewhere.
Correct Answer:
Verified
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Q27: The Federal Home Loan Bank System supplied
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Q31: Who created the first finance companies?
A)Thrifts
B)Retailers
C)Commercial banks
D)Consumer
Q32: Compare and contrast the means and motivations
Q33: Which of these is an accurate description
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Q35: Consumer finance companies lend money to people
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