Which of the following is not a method for lenders to control pledged inventory?
A) Blanket inventory liens
B) Trust receipts
C) Warehousing
D) Factoring

Question

Quizplus · Accepted Answer

Factoring is a method where a company sells its accounts receivables to a third-party at a discount, and it does not involve any control over inventory. Blanket inventory liens, trust receipts, and warehousing are all methods where the lenders have control over the pledged inventory.

Which of the Following Is Not a Method for Lenders