Which of the following best describes the agreement where a firm sells receivables to a lender and the lender agrees to pay the firm the amount due from its customers at the end of the firm's payment period,with the provision that the lender will receive payment from the borrower if the customers default on their payments?

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The agreement described in the question is known as factoring of accounts receivable with recourse. In this type of agreement, the lender (or factor) buys the receivables from the firm, but the firm agrees to buy them back if the customers default on their payments. This provides a degree of protection to the lender, as they can seek reimbursement from the borrower if the customers don't pay. Trust receipts, pledging of accounts receivable, and floating liens all refer to different types of security arrangements, none of which fully match the description given in the question. Factoring of accounts receivable without recourse is a similar agreement, but in this case, the factor takes on the risk of non-payment and does not have the option to seek reimbursement from the borrower.

Which of the Following Best Describes the Agreement Where a Firm