In the Context of Short-Term Financing, Which of the Following

Multiple Choice

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.