(SOLVED) When it comes to handling risk, Supply Chain Finance Instruments can have a big influence on certain types of risk.
Discipline: Finance
Type of Paper: Question-Answer
Academic Level: Undergrad. (yrs 1-2)
Paper Format: APA
Question
14.
When it comes to handling risk, Supply Chain Finance Instruments can have a big influence on certain types of risk. Which of the following are risks that Reverse Factoring can influence?
A) Disruptions, delays and accounts receivable risk
B) Disruptions, delays and currency risk
C) Disruptions, intellectual property risk and accounts receivable risk
D) Credit risk, disruptions and accounts receivable risk
15)
The two core reasons for buyers to have SCF instruments are
A) Improving working capital position and decreasing transaction costs
B) Risk mitigation and improving working capital position
C) Risk mitigation and improving relations with suppliers
D) Increasing supply chain transparency and improving relations with supplier
Expert Solution Preview
14. Answer is___________
The reverse factoring agreement determines a concentration of debt on
the financial entity when such concentration was previously splatter
between suppliers:even if only temporary, this circumstance increase
debtors vulnerability, especially in time of financial difficulties.
15. Answer is___________
