76-Factoring Business

Banking Awareness Multiple Choice Questions (MCQs) and Answers with explanation on Factoring Business in India for IBPS Bank PO, IBPS Bank Clerical, RRB PO and Clerical, SBI PO and SBI Clerical, IBPS Recruitments, RBI Grade B and RBI Bank

1. Which of the following are the different options available to the entrepreneurs for funding the business?

[A] Venture Capital
[B] Angel Financing
[C] Invoice Factoring
[D] All of the Above

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2. Which of the following clearly defines the Factoring business?

[A] It is a type of debtor finance in which a business sells its accounts receivable .
[B] The receivables are sold to the third party (called a factor) at a discount.
[C] It is commonly referred to as accounts receivable factoring, invoice factoring.
[D] All of the Above

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3. Factoring Business is also known as by which of the following names?

[A] Accounts Receivable Factoring
[B] Asset Based Lending
[C] Invoice Factoring
[D] All of the Above

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4. Which of the following civilization is considered to be the origin of Factoring?

[A] Indus Valley Civilization
[B] Mesopotamian culture
[C] Incas Civilization
[D] Aztecs Civilization

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5. For which of the following businesses Factoring services are most commonly used?

[A] Haulage Business
[B] Healthcare Industry
[C] Real Estate
[D] All of the Above

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6. Which of the following company started the first Factoring business service in India?

[A] SBI Factors and Commercials Limited
[B] IFCI Factors Limited
[C] Siemens Factoring Private Limited
[D] Canbank Factors Limited

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7. How many NBFC factors are there in India registered at present?

[A] 31
[B] 6
[C] 7
[D] 9

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8. Which of the following committee formed the basis for the introduction of factoring services in India?

[A] C.Rangarajan Committee
[B] Urjit Patel Committee
[C] C. S. Kalyan Sundaram Committee
[D] None of the Above

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9. What is the normal time period range for factoring in India?

[A] 70-80 days
[B] 80-90 days
[C] 90-120 days
[D] 90-150 days

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10. When was the Factoring Regulation Act passed in India?

[A] 2011
[B] 2000
[C] 1991
[D] 2001

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