In the context of short-term financing, which of the following statements is true of a factor?
A. It buys the accounts receivables of other firms.
B. It is a requirement lenders impose on borrowers as a condition of loans.
C. It is the mix of equity and debt financing a firm uses to meet its permanent financing needs.
D. It requires firms to maintain their own collection department.
Answer: A
You might also like to view...
The choices below depict five costs of Garfield Industries and a possible driver for each cost. Which of these choices likely contains an inappropriate cost driver?
A. Manufacturing overhead incurred in a heavily automated facility; direct labor hours. B. Gasoline consumed; number of miles driven. C. Sales commissions; gross sales revenue. D. Human resources department cost; number of employees. E. Building maintenance cost; building square footage.
__________is when a product or company attempts to give the impression of environmental friendliness whether or not it is environmentally friendly
Fill in the blanks with correct word.
If many individuals are involved in a buying decision, it is a case of a
A. straight rebuy. B. multiple buying influence situation. C. modified rebuy. D. selective rebuy. E. multiple input situation.
Puffery constitutes deceptive advertising
Indicate whether the statement is true or false