If a creditor assigns a debt owed to it as a result of a contractual obligation that neither party has as yet completely performed, how would the creditor be advantaged by having done so?
A) by the reduction of liability insurance premiums
B) by the reduction of its accounts receivable
C) by the reduction of the risk of remuneration default
D) by the early collection of accounts receivable

Question

Quizplus · Accepted Answer

Assigning the debt reduces the creditor's risk of default because the responsibility for collecting the debt is transferred to the assignee.

If a Creditor Assigns a Debt Owed to It as a Result