Multiple Choice
Which of the following is NOT a difference between factoring and securitization of receivables?
A) In securitization, many investors are involved, whereas factoring usually involves only one company.
B) Receivables are derecognized when securitized, but not when factored.
C) The quality of receivables factored tends to be lower than those securitized.
D) The seller retains responsibility to collect amounts due when securitized, but not when factored.
Correct Answer:

Verified
Correct Answer:
Verified
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