Homework Clinic
Social Science Clinic => Business => Topic started by: Tiffanyanne824 on May 9, 2022
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Question 1
Which of the following can be used to reduce the time it takes for a company to be paid for an order, often allowing them to be paid in as little as 24 hours?
◦ Leasing
◦ Trade credit
◦ Leveraging
◦ Factoring
◦ Commercial paper
Question 2
Which of the following handles the initial public offerings of stocks and bonds?
◦ Derivatives market
◦ Primary market
◦ Secondary market
◦ Equities market
◦ Treasury market
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Answer 1
Factoring
When the factoring company collects payment from the customer, it pays the balance of the invoice amount to the seller, minus its factoring fee. With this method, sellers get paid much sooner, often in as little as 24 hours, rather than in the weeks or months it might take without the factoring company's involvement.
Answer 2
Primary market
The equities market is another name for the stock market, and the securities market encompasses the stock, bond, and derivatives markets. Finally, securities markets can be divided into primary markets, which handle the IPOs of stocks and bonds, and secondary markets, which handle all the public buying and selling after that.