1. What is factoring?, A) A long-term loan for purchasing property, B) The purchase of accounts receivable by a third-party company, ) A type of hire purchase agreement, D) A government grant for small businesses, 2. Factoring is also known as:, A) Bridging finance, B) Invoice financing or accounts receivable financing, C) End financing, D) Leaseback agreement, 3. In factoring, the third-party company that buys the invoices is called a:, A) Lessor, B)Hirer, C) Factor, D)Mortgragor, 4. Which of the following is an advantage of factoring?, A) Increases long-term debt on balance sheet, B) Transfers risk of non-payment to the factor, C) Requires collateral like property, D) Ownership of company is diluted, 5. In recourse factoring, who bears the risk of non-payment by the customer?, A) The factor, B) The business (seller of invoices), C) The bank providing end financing, D) The lessee, 6. In non-recourse factoring, if the customer does not pay the invoice:, A) The business must buy back the invoice, B) The factor absorbs the loss, C) The government guarantees payment, D) The business loses its collateral, 7. Which type of factoring allows a business to sell individual invoices on a one-time basis?, A) Full-service factoring, B) Invoice discounting, C) Spot factoring, D) Export factoring, 8. Which factoring type is used for international trade and manages collections in multiple currencies?, A) Recourse factoring, B) Export factoring, C) Islamic factoring, D) Lease factoring, 9. According to the slides, which Malaysian bank provides factoring services?, A) Bank Rakyat, B) CIMB Bank, C) Bank Simpanan Nasional, D) OCBC Bank, 10. How does factoring improve a company’s creditworthiness?, A) It appears as equity on the balance sh, B) It does not appear as debt on the balance sheet, C) It increases long-term liabilities, D) It requires a credit rating upgrade, 11. In a hire purchase agreement, ownership of the asset is transferred to the buyer:, A) Immediately upon signing, B) After paying the deposit, C) After the final installment is paid, D) At the start of the lease term, 12. What is the typical down payment percentage in a hire purchase agreement?, A) 1–5%, B) 10–20%, C) 30–40%, D) 50–60%, 13. Which type of hire purchase follows Islamic principles by charging a markup instead of interest?, A) Regular hire purchase, B) Islamic hire purchase, C) Lease purchase, D) Balloon payment hire purchase, 14. In a hire purchase with balloon payment, the hirer:, A) Makes no monthly payments, B) Makes lower monthly payments with a large final payment, C) Never owns the asset, D) Pays the full price upfront, 15. Which of the following is a benefit of hire purchase?, A) No down payment required, B) Ownership is immediate, C) Fixed monthly payments help with budgeting, D) No interest charges, 16. Under a hire purchase agreement, the buyer is called the:, ) Lessee, B) Hirer, C) Factor, D) Lender, 17. Which Malaysian bank is mentioned as offering hire purchase financing?, A) Bank of China, B) Maybank Hire Purchase, C) Citibank, D) Standard Chartered, 18. In a lease purchase arrangement, at the end of the lease term, the hirer:, A) Must return the asset, B) Has the option to purchase the asset for a nominal amount, C) Automatically loses the asset, D) Pays double the original price, 19. Hire purchase agreements typically have a repayment period of:, A) 1–6 months, B) 2–9 years, C) 10–20 years, D) 30 years, 20. Which of the following is a disadvantage of hire purchase?, A) No interest charges, B) Ownership only after final payment, C) No down payment needed, D) Asset cannot be used until final payment, 21. In a lease agreement, the owner of the asset is called the:, A) Hirer, B) Lessee, C) Lessor, D) Factor, 22. Which type of lease is short-term and returns the asset to the lessor at the end?, A) Finance lease, B) Operating lease, C) Capital lease, D) Cross-border lease, 23. In a finance lease, the lessee:, A) Has no option to purchase the asset, B) Assumes most risks and rewards of ownership, C) Pays no maintenance costs, D) Never uses the asset, 24. A sale and leaseback arrangement allows a business to:, A) Avoid paying taxes, B) Free up capital tied up in assets, C) Transfer ownership permanently, D) Avoid lease payments, 25. Which type of lease involves parties in different countries?, A) Operating lease, B) Cross-border lease, C) Islamic lease, D) Spot lease, 26. According to the slides, which Malaysian company offers leasing services?, A) Proton Leasing, B) CIMB Leasing, C) Petronas Leasing, D) AirAsia Leasing, 27. What is a key benefit of leasing?, A) Ownership of the asset from day one, B) Lower upfront costs compared to purchasing, C)No monthly payments, DNo Credit Check Required, 28. In a capital lease, the asset is treated as:, A) An operating expense, B) A capital expense on the lessee’s balance sheet, C) A liability for the lessor, D) a tax exemption, 29. Leasing is especially useful in international trade for acquiring:, A)Low Value Items, B) Expensive assets like aircraft and shipping vessels, C) Real estate only, D) Small office supplies, 30. At the end of an operating lease, the lessee typically:, A) Buys the asset at market price, B) Returns the asset to the lessor, C) Automatically owns the asset, D) Sells the asset to a third party

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