In the context of the sources of financing, a factor is a company that provides longterm financing to firms by purchasing the firm's bonds and other long term securities at a discount.

Question

In the context of the sources of financing, a factor is a company that provides long­term financing to firms by purchasing the firm's bonds and other long­ term securities at a discount.

Quizplus · Accepted Answer

A factor is a financial intermediary that provides short-term financing by purchasing a company's accounts receivable at a discount, not long-term securities.

In the Context of the Sources of Financing, a Factor