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Explain to the owner what Factoring is

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Question -

Q1. Explain THREE (3) reasons why liquidity is important to a firm.

Q2. Lulu's Pies is looking for financing to improve their business. As Lulu's Pies expecting high receivables, owner is considering Factoring. As a banker, explain to the owner what Factoring is and advice TWO (2) advantages and TWO (2) disadvantages of choosing this type of financing.

Reference no: EM133104389

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