Multiple choice

Factoring is a

  1. social service

  2. financial service

  3. personal service

  4. business service

  5. none of these

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

It is a financial service. Factoring is the selling of a company accounts receivable at a discount to a factor, who assumes the credit risk of account debtors and receives cash as the debtors settle thier accounts.