Which of the following is a benefit of accounts receivable financing?

	a.	Pledging receivables may increase a firm's ability to borrow from a bank.
	b.	It is a low cost way of financing.
	c.	The volume of borrowing can be quickly expanded proportionally in order to match a firm's growth in sales and accounts receivable.
	d.	It considers the time value of money.

During the cash conversion period, the firm

	a.	sells its long-term assets.
	b.	increases its cash flow by paying accounts payable.
	c.	no longer has the benefit of accounts payable.
	d.	no longer has the benefit of accounts receivable.

Pure risk is

	a.	a chance all entrepreneurs take.
	b.	the uncertainty associated with a situation where only loss or no loss can occur.
	c.	a condition in which there is a possibility that an adverse deviation from a desired outcome will occur.
	d.	a probability that adverse conditions will result.