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Milton Co. pledged some of its accounts receivable to Good Neighbor Financing Corporation in return for a loan. Which of the following statements is correct?

a) Good Neighbor financing cannot take title to the receivable if Milton does not repay the loan. Title can only be taken if the receivables are factored.
b) Good Neighbor financing will assume the responsibility of collecting the receivablesw
c) Milton will retain control of the receivables
d) Good Neighbor financing will take title to the receivables, and will return title to Milton after the loan is paid.

 

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