Which of the following organizations purchases a company's accounts receivable to help them finance their business?

a. federal reserve bank

b. commerical banks

c. factors

d. consumer finance companies

In general, most businesses should take advantage of a cash discount of 2/10 net 30 because the cost of not doing so is more expensive than the cost of borrowing.

a. True

b. False

The choice of financing strategy involves a trade off between return and risk.

a. True

b. False