(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

Pages: 1 Words: 100

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___________