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This is the selling of accounts receivable at a discount to a third-party funding source to raise capital.Select one:a.factoringb.lease financingc.merchant bankingd.mutual fund

Question

This is the selling of accounts receivable at a discount to a third-party funding source to raise capital.Select one:a.factoringb.lease financingc.merchant bankingd.mutual fund

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Solution

The correct answer is a. factoring. This is a financial transaction and a type of debtor finance in which a business sells its accounts receivable (i

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