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What Does 'Factoring, Mean When Applied to Trade Receivables

Question 9

Multiple Choice

What does 'factoring, mean when applied to trade receivables?


A) It is a method of determining how many are expected to 'go bad'.
B) It means that trade receivables are 'sold' to a third party.
C) It is a term applied to offering a discount for early payment of trade receivables.
D) It is the method of circularizing more credit customers than required to account for non-responses. ?

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