Home › Bihar Board Class 12 (Commerce) › Business Studies › Sources of Business Finance › In factoring, receivables are sold to the factor…
In factoring, receivables are sold to the factor at what?
AA premium price
BFace value and fee
CDouble their value
DA certain discount
Answer & Solution
Correct answer: D. A certain discount
The factor buys the client's receivables at a discount, which is how it earns for its service.
Related questions
Which is true of the choice of a source of funds?Short-term financing mostly funds which kind of asset?Besides finance, development institutions also provide what?Financial institutions mainly meet which type of requirements?Government financial institutions are also called what?Before sanctioning a loan, a commercial bank requires the borrower to do what?A bank loan does not need which formality?A merit of bank loans is that business secrecy is what?