If a Company Decides to Factor Its Receivables Without Recourse

Multiple Choice

If a company decides to factor its receivables without recourse, it will:

A) offer the receivables to a lending institution as collateral.
B) sell receivables to a lender and remain liable for uncollectible accounts.
C) sell the receivables at a discount.
D) offer receivables that are more than 120 days old to a collection agency.
E) none of the above defines factoring receivables.