A firm has a serious cash shortage due to the growing investment in accounts receivable.If this firm is incapable of dealing with such a high level of receivables,how would it likely benefit most?

Question

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Factoring receivables involves selling them to a third party at a discount, which would provide immediate cash flow for the firm. This would be the most beneficial option for a firm experiencing a serious cash shortage due to high levels of receivables. The other options may provide short-term relief, but they do not address the underlying issue of too much tied up in accounts receivable.

A Firm Has a Serious Cash Shortage Due to the Growing