In more complicated financing arrangements, firms sell batches of receivables to a legally separate entity whose sole purpose is to hold the receivables and issue claims on their cash flows. The entity holding the receivables issues securities to investors in return for cash and transfers the cash to the transferor in payment for the receivables. The investors in securities issued by the entity
receive payments out of the cash flow from the transferred receivables. Common terminology refers to such an entity as a
a. special purpose entity.
b. pass-through entity.
c. tax shelter.
d. subsidiary entity.
e. securitized entity.
A
Business
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________ involves persuading people to buy goods they had no thought of buying
A) Sustainable marketing B) High-pressure selling C) Strategic marketing D) Redlining E) Reverse redlining
Business
In order to build large production units and expedite certain routine government actions related to this, Scorpius Inc. made legal payments to the government officials of a host nation. Such payments are typically referred to as:
A. bribes. B. speed money. C. customs duties. D. excise taxes. E. preferred dividends.
Business