Asked by Vaishak Reddy on Jun 12, 2024
Verified
A company pledges their receivables so they may
A) Collect a pledge fee.
B) Borrow money.
C) Charge a factoring fee.
D) Increase sales.
E) Recognize a sale.
Pledges Receivables
Amounts promised to be paid by donors to a fundraising organization or a charitable cause.
Pledge Fee
A charge assessed for the service of securing a loan or guarantee, commonly associated with loans or financing agreements.
- Apprehend the motives behind sellers' adoption of credit cards and factoring practices.
Verified Answer
NK
Nadiah KamalJun 13, 2024
Final Answer :
B
Explanation :
Pledging receivables is a common practice for companies to borrow money from a bank or financial institution. By pledging their receivables as collateral, the company can access funds at a lower interest rate than if they were to borrow using no collateral. The pledged receivables provide security for the lender against default.
Learning Objectives
- Apprehend the motives behind sellers' adoption of credit cards and factoring practices.
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