Asked by Meadow Smith on Jul 22, 2024
Verified
Pledged financing is a short-term financing that involves either the assignment of receivables to another company for collection.
Pledged Financing
Financing obtained by offering assets as collateral to secure the loan, reducing the lender's risk.
Assignment Of Receivables
The transfer of a company's right to receive money from a debtor to another party.
- Acquire knowledge on the methods of short-term financing and the importance of marketable securities.
- Comprehend the different short-term financing options and their effects on financial management.
Verified Answer
FT
Fakiyesi TosinJul 25, 2024
Final Answer :
False
Explanation :
Pledged financing often involves using assets as collateral for a loan, rather than the assignment of receivables for collection, which is more characteristic of factoring or receivables financing.
Learning Objectives
- Acquire knowledge on the methods of short-term financing and the importance of marketable securities.
- Comprehend the different short-term financing options and their effects on financial management.
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