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forsale [732]
3 years ago
6

Rick's wholesale office supplies prefers to handle its accounts receivable itself, but it also needs to use them to facilitate s

hort-term borrowing. what can rick's do?
Business
1 answer:
o-na [289]3 years ago
3 0
The best way for Rick to handle this situation is to pledge them as a collateral so that it is a way of having them pledge in terms of arrangement in payment and that will benefit Rick and have the assurance that both methods used will still be their of advantage and would give them the upper hand or authority.
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Answer:

The transferor does not maintain effective control over the transferred financial asset or third party beneficial interest in the asset.

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The code for transfer of receivable provisions, allows creditor of a debt to have the right to transfer his/ her receivable right to another person, provided that the transaction is permitted by the law/ contract nature of business. Transfer of receivables permit the third person/ party to be included in the relationship that exist between debtor and creditor, and this allows him/ her to near the title of creditor.The receivable must be an existing one before the receivable transfer can be possible. It should be noted that for transfer of receivables be recorded as a sale, The transferor does not maintain effective control over the transferred financial asset or third party beneficial interest in the asset.

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Stock markets are one of the factors that affect the economy, but there are others as well. Consumer spending and business investment slows down, which reduces economic growth. Falling interest rates can stimulate economic growth. Fiscal policy decisions also can affect the economy.

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