When a firm sells its accounts receivables to a financial institution, it is called:
A)captive financing.
B)collateralization.
C)securitization.
D)legalization.
E)None of the above.

Question

Quizplus · Accepted Answer

When a firm sells its accounts receivables to a financial institution, it is called securitization. Captive financing refers to financing provided by a subsidiary or parent company. Collateralization involves pledging an asset as collateral for a loan. Legalization refers to making something legal under the law.

When a Firm Sells Its Accounts Receivables to a Financial