7) A unique characteristic of factoring (supply chain financing) related to other sources of financing is that.

7) A unique characteristic of factoring (supply chain financing) related to other sources of financing is that...

i)Managers have zero recourse for factoring engagements (meaning that they are

not personally "on the hook" for potential losses.

ii)Factors pay special attention to the customers' credit strength.

iii)Factors pay special attention to the vendors' credit strength.

iv)Factors pay special attention to the company's credit strength (the company with

which they engage in business).

8) Firms with higher real options value, or, alternatively, more growth opportunities typically display the following characteristics of corporate financial policies relative to other similar firms... (here, clearly circle the THREE that most directly apply)

i)Higher cash holdings

ii)Lower cash holdings

iii)Pay more dividends

iv)Pay fewer dividends

v)Carry a lower debt-to-equity ratio

vi)Carry a larger debt-to-equity ratio