Securitization of accounts receivable solves two problems for MNCs:
A)collecting accounts receivable and writing off bad debts.
B)managing accounts receivable and obtaining financing.
C)creating accounts receivable and collecting accounts receivable.
D)obtaining working capital and avoiding currency risk.

Question

Quizplus · Accepted Answer

Securitization of accounts receivable allows MNCs to manage their accounts receivable by obtaining financing backed by these assets. This financing can be used as working capital, helping the MNC to avoid currency risk by allowing them to hedge their positions. Additionally, this process can help MNCs diversify their funding sources and obtain better terms for their financing.

Securitization of Accounts Receivable Solves Two Problems for MNCs