Which of the following is least likely to be correct about the factoring of receivables?
A) The selling firm bears the risk of default.
B) The higher the perceived quality of the receivables, the lower the discount rate.
C) The discount is paid by the selling firm in the form of reduced sales price.
D) Factoring may be the cheapest method of avoiding a cash flow problem.
Correct Answer:
Verified
Q41: Firms that continually invest in nontrivial amounts
Q43: What was the sales volume in the
Q44: A line of credit would be considered:
A)
Q45: A firm's permanent working capital refers to
Q46: Which of the following statements about total
Q49: Which of the following is not typically
Q51: Which of the following is least likely
Q52: Trade credit is created when:
A) customers return
Q53: When financial managers take action to minimize
Q59: If a firm's current ratio exceeds 1.0,
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents