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CIMAPRA19-F01-1 Exam - Topic 3 Question 3 Discussion

Actual exam question for CIMA's CIMAPRA19-F01-1 exam

Question #: 3
Topic #: 3

[All CIMAPRA19-F01-1 Questions]

Which of the following is the most appropriate definition of the term 'factoring'?

AWhere a business sells its accounts receivable to a third party at a discount

BWhere a business borrows a loan with short-term conditions from a third party

CWhere a business sells equity to third parties to gain short-term finance

DWhere a business is provided with a highly flexible regular source of short-term finance by a bank

Show Suggested Answer

Suggested Answer: A

by Fatima at May 04, 2022, 06:50 AM

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Lawrence

9 months ago

I thought factoring was more about loans, not selling receivables.

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Sunshine

9 months ago

Definitely A, the other options don't fit at all.

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Jolanda

9 months ago

Wait, isn't that just a fancy way of saying they need cash fast?

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Shalon

9 months ago

Totally agree, it's all about selling invoices!

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Theola

9 months ago

Factoring is when a business sells its accounts receivable.

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Tran

10 months ago

Okay, job evaluation is the process of systematically determining the relative internal value of a job, so that's got to be the right answer. I'm confident in selecting A.

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Alex

10 months ago

This seems like a straightforward problem that can be solved without machine learning expertise. I'd go with option D - using Amazon Comprehend's custom classification to train a model on the existing data and then integrate that into the application.

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