The outsourcing of the management of receivables is known as:
A) Factoring
B) Economic order quantity
C) Credit rating
D) Receivership

Question

Quizplus · Accepted Answer

Factoring is the term used when a company transfers its receivables to a third party, who then manages the collection process. This allows the company to focus on other aspects of their business, while the third party takes care of the receivables. Economic order quantity is a concept related to inventory management. Credit rating refers to an evaluation of the creditworthiness of an individual or organization. Receivership is a legal process in which a receiver is appointed to manage the affairs of a company that is insolvent.

The Outsourcing of the Management of Receivables Is Known As