Firms That Would Benefit from a Factoring Service Are Firms

Multiple Choice

Firms that would benefit from a factoring service are firms that:

A) need to establish a source of long­term financing and avoid fees and commissions.
B) have larger than necessary cash balances and want to find a safe way to invest the excess cash.
C) rely heavily on credit sales and want to speed up their receipt of cash.
D) plan to issue large sums of commercial paper in the near future.