FIN 419 Week 3 DQs - 7659

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Can an organization operate without current liabilities? Explain.

 

Define factoring of accounts receivables.

How does factoring effect cash management?

Explain the difference between factoring and accounts receivable financing.

What is zero working capital? How would you define zero working capital? 

Solution Description

No, since liabilities are used to finance operation, liabilities are vital to an organizations operation.

Factoring accounts receivable is a commonly used means of obtaining short-term financing with accounts receivable. An organization can obt