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Drupady [299]
3 years ago
7

Why would firms that rely heavily on credit sales find factoring attractive?

Business
1 answer:
lorasvet [3.4K]3 years ago
5 0
From my understanding, factoring is a specific transaction in which a business sells its invoices to a factor, which is a third party commercial financial company. This process is completed so that the business can get cash quicker than it would to wait for a customer’s payment. With factoring, a company will have more<span>more more flexibility because the funds are not restricted, rather than having to deal with a typical bank loan</span><span />
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You purchased XYZ stock at $50 per share. The stock is currently selling at $65. You don't want to sell the stock just now, beca
jonny [76]

Answer:

You could protect yourself from the possibility of significant price decline by buying put options for your stock. A put option gives the buyer of the put option the right to sell the stock at a particular price till a particular date. So for example you could buy a put option which gives you the right to sell your stock for $65 1 year from now. Assume you buy the put option for $1 and the price of the stock goes back to $50 in a year. Because you have the put option you can sell the stock for $65 because of the put option, and lose only $1 instead of $15. Where as if the stock price increases to $75, then you can sell the stock at $75, and you will make a profit of $24 (75-50-1)

Explanation:

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4 years ago
Last year Marcelino graduated from high school and received several thousand dollars from an uncle as a graduation gift.​ Marcel
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yes.

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3 years ago
Read 2 more answers
Which business document is a contract that defines the tasks, time frame, and deliverables that a vendor must perform for a clie
Aleonysh [2.5K]
The statement of work is <span>a contract that defines the tasks, time frame, and deliverables that a vendor must perform for a client.
There are several things that will be written in the statement of work in order to manage the deal, such as the name of the project, the timeline for the project, the project handler, the delivery method, etc.</span>
6 0
3 years ago
Equipment with a book value of $83,500 and an original cost of $162,000 was sold at a loss of $32,000. Paid $106,000 cash for a
irga5000 [103]

Answer:

Net cash flow from investing activities $417,400

Explanation:

The computation of cash flow from investing activity is given below:

Cash flow from investing activities  

Add: Equipment sold ($83,500 - $32,000) $51,500

(Book value - loss )  

Less : Acquisition of new truck -$106,000

Add : Land sold $400,000

Add : Long term investment sold $91,400

Net cash flow from investing activities $417,400

3 0
3 years ago
Operating activities are most closely related to?
KATRIN_1 [288]

Answer: current assets and current liabilities.

Explanation:

if this helps it would help me a lot if you would give me a like

3 0
2 years ago
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