Factoring

Q.

Recourse and non-recourse are a part of which source of finance?

1. Debentures

2. Retained Earnings

3. Trade Credit

4. Factoring

Q.

Factoring as the source of funds is flexible.

1. True

2. False

Q.

The difference between non-recourse as opposed to recourse factoring is that the company has no liability with any uncollected invoices.

1. True

2. False

Q.

Who initiated factoring in the Indian financial scene in the early nineties?

1. SBI

2. RBI

3. UTI

4. All of the above

Q.

Which of the sources of finance is expensive when the invoices are numerous and smaller in amount?

1. Retained Earning

2. Factoring

3. Equity Shares

4. Trade Credit

Q. Factoring as a source of funds is flexible and ensures a definite pattern of cash inflows from credit sales.

1. False
2. True

Q. Factoring is a transaction in which a business sells its invoices, or receivables, to a third-party financial company known as a factor.

1. True
2. False

Q. It is expensive if the invoices are multiple but high in amount.

1. True
2. False

Q.

Loans from commercial banks is a flexible source of finance.

1. True

2. False

Q.

Loans from commercial banks is a flexible source of finance.

1. True

2. False