Thi thử VSTEP – 10 Bài Reading Test 3 Part 2

Questions 21-30

In April 1870, an art exhibit opened in Paris featuring famous and priceless works of art. However, at the time, no one knew that these paintings would one day be considered masterpieces. The paintings and the painters werevirtuallyunknown at the time and would remain that way for several years.

In the nineteenth century, French art was dominated by the Academy of Fine Arts. Every year the academy held an art show called Le Salon. In 1863, the Academy rejected one of the paintings of Edouard Manet. Manet and a group of other independent artists organized their own show, which they called Salon des Refuses (Salon of the Rejected) opened on April 15,1874. A newspaper critic named louis Leroy visited the gallery and was not pleased with what he saw. A painting by Claude Monet particularly enraged him. Leroy wrote that this piece, and in fact most of the pieces in the show, looked like “impressions” – a term for a preliminary, unfinished sketch made before a painting is done. Leroy’s newspaper review was jokingly called “The Exhibition of the Impressionists.” Within a few years of Leroy’s review, the term Impressionists had clearly stuck, not as a term of derision but as a badge of honor, and a new movement was born.

The Impressionist movement included the French painters Edouard Manet, Claude Monet, Pierre-Auguste Renoir, Edgar Degas, Paul Cezanne, and the American painter Mary Cassatt. The techniques and standards employed within the Impressionist movement varied widely, and though the artists shared a core of values, the real glue which bound the movement together was its spirit of rebellion and independence. This spirit is clear when you compare Impressionist paintings with traditional French paintings of the time. Traditional painters tended to paint rather serious scenes from history and mythology. Many Impressionist paintings feature pleasant scenes of urban life, celebrating the leisure time that the Industrial Revolution had won for the middle class, as shown in Renoir’s luminous paintingLuncheon of the Boating Party. Renoir once said that paintings should be “...likable, joyous, and pretty.” He said, “There are enough unpleasant things in this world. We don’t have to paint them as well.”

The Impressionists delighted in painting landscapes (except for Edgar Degas, who preferred painting indoor scenes, and Mary Cassatt, who mainly painted portraits of mothers and children).[A]. Traditional painters, too, painted landscapes, but their landscapes tended to be somber and dark.[B]The Impressionists’ landscapes sparkle with light.[C]Impressionists insisted that their works be “true to nature.”[D]When they painted landscapes, they carried their paints and canvases outdoors in order to capture the ever-changing light. Traditional painters generally made preliminary sketches outside but worked on the paintings themselves in their studios.

Questions 21-30

In April 1870, an art exhibit opened in Paris featuring famous and priceless works of art. However, at the time, no one knew that these paintings would one day be considered masterpieces. The paintings and the painters werevirtuallyunknown at the time and would remain that way for several years.

In the nineteenth century, French art was dominated by the Academy of Fine Arts. Every year the academy held an art show called Le Salon. In 1863, the Academy rejected one of the paintings of Edouard Manet. Manet and a group of other independent artists organized their own show, which they called Salon des Refuses (Salon of the Rejected) opened on April 15,1874. A newspaper critic named louis Leroy visited the gallery and was not pleased with what he saw. A painting by Claude Monet particularly enraged him. Leroy wrote that this piece, and in fact most of the pieces in the show, looked like “impressions” – a term for a preliminary, unfinished sketch made before a painting is done. Leroy’s newspaper review was jokingly called “The Exhibition of the Impressionists.” Within a few years of Leroy’s review, the term Impressionists had clearly stuck, not as a term of derision but as a badge of honor, and a new movement was born.

The Impressionist movement included the French painters Edouard Manet, Claude Monet, Pierre-Auguste Renoir, Edgar Degas, Paul Cezanne, and the American painter Mary Cassatt. The techniques and standards employed within the Impressionist movement varied widely, and though the artists shared a core of values, the real glue which bound the movement together was its spirit of rebellion and independence. This spirit is clear when you compare Impressionist paintings with traditional French paintings of the time. Traditional painters tended to paint rather serious scenes from history and mythology. Many Impressionist paintings feature pleasant scenes of urban life, celebrating the leisure time that the Industrial Revolution had won for the middle class, as shown in Renoir’s luminous paintingLuncheon of the Boating Party. Renoir once said that paintings should be “...likable, joyous, and pretty.” He said, “There are enough unpleasant things in this world. We don’t have to paint them as well.”

The Impressionists delighted in painting landscapes (except for Edgar Degas, who preferred painting indoor scenes, and Mary Cassatt, who mainly painted portraits of mothers and children).[A]. Traditional painters, too, painted landscapes, but their landscapes tended to be somber and dark.[B]The Impressionists’ landscapes sparkle with light.[C]Impressionists insisted that their works be “true to nature.”[D]When they painted landscapes, they carried their paints and canvases outdoors in order to capture the ever-changing light. Traditional painters generally made preliminary sketches outside but worked on the paintings themselves in their studios.

Questions 21-30

In April 1870, an art exhibit opened in Paris featuring famous and priceless works of art. However, at the time, no one knew that these paintings would one day be considered masterpieces. The paintings and the painters werevirtuallyunknown at the time and would remain that way for several years.

In the nineteenth century, French art was dominated by the Academy of Fine Arts. Every year the academy held an art show called Le Salon. In 1863, the Academy rejected one of the paintings of Edouard Manet. Manet and a group of other independent artists organized their own show, which they called Salon des Refuses (Salon of the Rejected) opened on April 15,1874. A newspaper critic named louis Leroy visited the gallery and was not pleased with what he saw. A painting by Claude Monet particularly enraged him. Leroy wrote that this piece, and in fact most of the pieces in the show, looked like “impressions” – a term for a preliminary, unfinished sketch made before a painting is done. Leroy’s newspaper review was jokingly called “The Exhibition of the Impressionists.” Within a few years of Leroy’s review, the term Impressionists had clearly stuck, not as a term of derision but as a badge of honor, and a new movement was born.

The Impressionist movement included the French painters Edouard Manet, Claude Monet, Pierre-Auguste Renoir, Edgar Degas, Paul Cezanne, and the American painter Mary Cassatt. The techniques and standards employed within the Impressionist movement varied widely, and though the artists shared a core of values, the real glue which bound the movement together was its spirit of rebellion and independence. This spirit is clear when you compare Impressionist paintings with traditional French paintings of the time. Traditional painters tended to paint rather serious scenes from history and mythology. Many Impressionist paintings feature pleasant scenes of urban life, celebrating the leisure time that the Industrial Revolution had won for the middle class, as shown in Renoir’s luminous paintingLuncheon of the Boating Party. Renoir once said that paintings should be “...likable, joyous, and pretty.” He said, “There are enough unpleasant things in this world. We don’t have to paint them as well.”

The Impressionists delighted in painting landscapes (except for Edgar Degas, who preferred painting indoor scenes, and Mary Cassatt, who mainly painted portraits of mothers and children).[A]. Traditional painters, too, painted landscapes, but their landscapes tended to be somber and dark.[B]The Impressionists’ landscapes sparkle with light.[C]Impressionists insisted that their works be “true to nature.”[D]When they painted landscapes, they carried their paints and canvases outdoors in order to capture the ever-changing light. Traditional painters generally made preliminary sketches outside but worked on the paintings themselves in their studios.

Questions 21-30

In April 1870, an art exhibit opened in Paris featuring famous and priceless works of art. However, at the time, no one knew that these paintings would one day be considered masterpieces. The paintings and the painters werevirtuallyunknown at the time and would remain that way for several years.

In the nineteenth century, French art was dominated by the Academy of Fine Arts. Every year the academy held an art show called Le Salon. In 1863, the Academy rejected one of the paintings of Edouard Manet. Manet and a group of other independent artists organized their own show, which they called Salon des Refuses (Salon of the Rejected) opened on April 15,1874. A newspaper critic named louis Leroy visited the gallery and was not pleased with what he saw. A painting by Claude Monet particularly enraged him. Leroy wrote that this piece, and in fact most of the pieces in the show, looked like “impressions” – a term for a preliminary, unfinished sketch made before a painting is done. Leroy’s newspaper review was jokingly called “The Exhibition of the Impressionists.” Within a few years of Leroy’s review, the term Impressionists had clearly stuck, not as a term of derision but as a badge of honor, and a new movement was born.

The Impressionist movement included the French painters Edouard Manet, Claude Monet, Pierre-Auguste Renoir, Edgar Degas, Paul Cezanne, and the American painter Mary Cassatt. The techniques and standards employed within the Impressionist movement varied widely, and though the artists shared a core of values, the real glue which bound the movement together was its spirit of rebellion and independence. This spirit is clear when you compare Impressionist paintings with traditional French paintings of the time. Traditional painters tended to paint rather serious scenes from history and mythology. Many Impressionist paintings feature pleasant scenes of urban life, celebrating the leisure time that the Industrial Revolution had won for the middle class, as shown in Renoir’s luminous paintingLuncheon of the Boating Party. Renoir once said that paintings should be “...likable, joyous, and pretty.” He said, “There are enough unpleasant things in this world. We don’t have to paint them as well.”

The Impressionists delighted in painting landscapes (except for Edgar Degas, who preferred painting indoor scenes, and Mary Cassatt, who mainly painted portraits of mothers and children).[A]. Traditional painters, too, painted landscapes, but their landscapes tended to be somber and dark.[B]The Impressionists’ landscapes sparkle with light.[C]Impressionists insisted that their works be “true to nature.”[D]When they painted landscapes, they carried their paints and canvases outdoors in order to capture the ever-changing light. Traditional painters generally made preliminary sketches outside but worked on the paintings themselves in their studios.

Questions 21-30

In April 1870, an art exhibit opened in Paris featuring famous and priceless works of art. However, at the time, no one knew that these paintings would one day be considered masterpieces. The paintings and the painters werevirtuallyunknown at the time and would remain that way for several years.

In the nineteenth century, French art was dominated by the Academy of Fine Arts. Every year the academy held an art show called Le Salon. In 1863, the Academy rejected one of the paintings of Edouard Manet. Manet and a group of other independent artists organized their own show, which they called Salon des Refuses (Salon of the Rejected) opened on April 15,1874. A newspaper critic named louis Leroy visited the gallery and was not pleased with what he saw. A painting by Claude Monet particularly enraged him. Leroy wrote that this piece, and in fact most of the pieces in the show, looked like “impressions” – a term for a preliminary, unfinished sketch made before a painting is done. Leroy’s newspaper review was jokingly called “The Exhibition of the Impressionists.” Within a few years of Leroy’s review, the term Impressionists had clearly stuck, not as a term of derision but as a badge of honor, and a new movement was born.

The Impressionist movement included the French painters Edouard Manet, Claude Monet, Pierre-Auguste Renoir, Edgar Degas, Paul Cezanne, and the American painter Mary Cassatt. The techniques and standards employed within the Impressionist movement varied widely, and though the artists shared a core of values, the real glue which bound the movement together was its spirit of rebellion and independence. This spirit is clear when you compare Impressionist paintings with traditional French paintings of the time. Traditional painters tended to paint rather serious scenes from history and mythology. Many Impressionist paintings feature pleasant scenes of urban life, celebrating the leisure time that the Industrial Revolution had won for the middle class, as shown in Renoir’s luminous paintingLuncheon of the Boating Party. Renoir once said that paintings should be “...likable, joyous, and pretty.” He said, “There are enough unpleasant things in this world. We don’t have to paint them as well.”

The Impressionists delighted in painting landscapes (except for Edgar Degas, who preferred painting indoor scenes, and Mary Cassatt, who mainly painted portraits of mothers and children).[A]. Traditional painters, too, painted landscapes, but their landscapes tended to be somber and dark.[B]The Impressionists’ landscapes sparkle with light.[C]Impressionists insisted that their works be “true to nature.”[D]When they painted landscapes, they carried their paints and canvases outdoors in order to capture the ever-changing light. Traditional painters generally made preliminary sketches outside but worked on the paintings themselves in their studios.

Questions 21-30

In April 1870, an art exhibit opened in Paris featuring famous and priceless works of art. However, at the time, no one knew that these paintings would one day be considered masterpieces. The paintings and the painters werevirtuallyunknown at the time and would remain that way for several years.

In the nineteenth century, French art was dominated by the Academy of Fine Arts. Every year the academy held an art show called Le Salon. In 1863, the Academy rejected one of the paintings of Edouard Manet. Manet and a group of other independent artists organized their own show, which they called Salon des Refuses (Salon of the Rejected) opened on April 15,1874. A newspaper critic named louis Leroy visited the gallery and was not pleased with what he saw. A painting by Claude Monet particularly enraged him. Leroy wrote that this piece, and in fact most of the pieces in the show, looked like “impressions” – a term for a preliminary, unfinished sketch made before a painting is done. Leroy’s newspaper review was jokingly called “The Exhibition of the Impressionists.” Within a few years of Leroy’s review, the term Impressionists had clearly stuck, not as a term of derision but as a badge of honor, and a new movement was born.

The Impressionist movement included the French painters Edouard Manet, Claude Monet, Pierre-Auguste Renoir, Edgar Degas, Paul Cezanne, and the American painter Mary Cassatt. The techniques and standards employed within the Impressionist movement varied widely, and though the artists shared a core of values, the real glue which bound the movement together was its spirit of rebellion and independence. This spirit is clear when you compare Impressionist paintings with traditional French paintings of the time. Traditional painters tended to paint rather serious scenes from history and mythology. Many Impressionist paintings feature pleasant scenes of urban life, celebrating the leisure time that the Industrial Revolution had won for the middle class, as shown in Renoir’s luminous paintingLuncheon of the Boating Party. Renoir once said that paintings should be “...likable, joyous, and pretty.” He said, “There are enough unpleasant things in this world. We don’t have to paint them as well.”

The Impressionists delighted in painting landscapes (except for Edgar Degas, who preferred painting indoor scenes, and Mary Cassatt, who mainly painted portraits of mothers and children).[A]. Traditional painters, too, painted landscapes, but their landscapes tended to be somber and dark.[B]The Impressionists’ landscapes sparkle with light.[C]Impressionists insisted that their works be “true to nature.”[D]When they painted landscapes, they carried their paints and canvases outdoors in order to capture the ever-changing light. Traditional painters generally made preliminary sketches outside but worked on the paintings themselves in their studios.

Questions 21-30

In April 1870, an art exhibit opened in Paris featuring famous and priceless works of art. However, at the time, no one knew that these paintings would one day be considered masterpieces. The paintings and the painters werevirtuallyunknown at the time and would remain that way for several years.

In the nineteenth century, French art was dominated by the Academy of Fine Arts. Every year the academy held an art show called Le Salon. In 1863, the Academy rejected one of the paintings of Edouard Manet. Manet and a group of other independent artists organized their own show, which they called Salon des Refuses (Salon of the Rejected) opened on April 15,1874. A newspaper critic named louis Leroy visited the gallery and was not pleased with what he saw. A painting by Claude Monet particularly enraged him. Leroy wrote that this piece, and in fact most of the pieces in the show, looked like “impressions” – a term for a preliminary, unfinished sketch made before a painting is done. Leroy’s newspaper review was jokingly called “The Exhibition of the Impressionists.” Within a few years of Leroy’s review, the term Impressionists had clearly stuck, not as a term of derision but as a badge of honor, and a new movement was born.

The Impressionist movement included the French painters Edouard Manet, Claude Monet, Pierre-Auguste Renoir, Edgar Degas, Paul Cezanne, and the American painter Mary Cassatt. The techniques and standards employed within the Impressionist movement varied widely, and though the artists shared a core of values, the real glue which bound the movement together was its spirit of rebellion and independence. This spirit is clear when you compare Impressionist paintings with traditional French paintings of the time. Traditional painters tended to paint rather serious scenes from history and mythology. Many Impressionist paintings feature pleasant scenes of urban life, celebrating the leisure time that the Industrial Revolution had won for the middle class, as shown in Renoir’s luminous paintingLuncheon of the Boating Party. Renoir once said that paintings should be “...likable, joyous, and pretty.” He said, “There are enough unpleasant things in this world. We don’t have to paint them as well.”

The Impressionists delighted in painting landscapes (except for Edgar Degas, who preferred painting indoor scenes, and Mary Cassatt, who mainly painted portraits of mothers and children).[A]. Traditional painters, too, painted landscapes, but their landscapes tended to be somber and dark.[B]The Impressionists’ landscapes sparkle with light.[C]Impressionists insisted that their works be “true to nature.”[D]When they painted landscapes, they carried their paints and canvases outdoors in order to capture the ever-changing light. Traditional painters generally made preliminary sketches outside but worked on the paintings themselves in their studios.

Questions 21-30

In April 1870, an art exhibit opened in Paris featuring famous and priceless works of art. However, at the time, no one knew that these paintings would one day be considered masterpieces. The paintings and the painters werevirtuallyunknown at the time and would remain that way for several years.

In the nineteenth century, French art was dominated by the Academy of Fine Arts. Every year the academy held an art show called Le Salon. In 1863, the Academy rejected one of the paintings of Edouard Manet. Manet and a group of other independent artists organized their own show, which they called Salon des Refuses (Salon of the Rejected) opened on April 15,1874. A newspaper critic named louis Leroy visited the gallery and was not pleased with what he saw. A painting by Claude Monet particularly enraged him. Leroy wrote that this piece, and in fact most of the pieces in the show, looked like “impressions” – a term for a preliminary, unfinished sketch made before a painting is done. Leroy’s newspaper review was jokingly called “The Exhibition of the Impressionists.” Within a few years of Leroy’s review, the term Impressionists had clearly stuck, not as a term of derision but as a badge of honor, and a new movement was born.

The Impressionist movement included the French painters Edouard Manet, Claude Monet, Pierre-Auguste Renoir, Edgar Degas, Paul Cezanne, and the American painter Mary Cassatt. The techniques and standards employed within the Impressionist movement varied widely, and though the artists shared a core of values, the real glue which bound the movement together was its spirit of rebellion and independence. This spirit is clear when you compare Impressionist paintings with traditional French paintings of the time. Traditional painters tended to paint rather serious scenes from history and mythology. Many Impressionist paintings feature pleasant scenes of urban life, celebrating the leisure time that the Industrial Revolution had won for the middle class, as shown in Renoir’s luminous paintingLuncheon of the Boating Party. Renoir once said that paintings should be “...likable, joyous, and pretty.” He said, “There are enough unpleasant things in this world. We don’t have to paint them as well.”

The Impressionists delighted in painting landscapes (except for Edgar Degas, who preferred painting indoor scenes, and Mary Cassatt, who mainly painted portraits of mothers and children).[A]. Traditional painters, too, painted landscapes, but their landscapes tended to be somber and dark.[B]The Impressionists’ landscapes sparkle with light.[C]Impressionists insisted that their works be “true to nature.”[D]When they painted landscapes, they carried their paints and canvases outdoors in order to capture the ever-changing light. Traditional painters generally made preliminary sketches outside but worked on the paintings themselves in their studios.

Questions 21-30

In April 1870, an art exhibit opened in Paris featuring famous and priceless works of art. However, at the time, no one knew that these paintings would one day be considered masterpieces. The paintings and the painters werevirtuallyunknown at the time and would remain that way for several years.

In the nineteenth century, French art was dominated by the Academy of Fine Arts. Every year the academy held an art show called Le Salon. In 1863, the Academy rejected one of the paintings of Edouard Manet. Manet and a group of other independent artists organized their own show, which they called Salon des Refuses (Salon of the Rejected) opened on April 15,1874. A newspaper critic named louis Leroy visited the gallery and was not pleased with what he saw. A painting by Claude Monet particularly enraged him. Leroy wrote that this piece, and in fact most of the pieces in the show, looked like “impressions” – a term for a preliminary, unfinished sketch made before a painting is done. Leroy’s newspaper review was jokingly called “The Exhibition of the Impressionists.” Within a few years of Leroy’s review, the term Impressionists had clearly stuck, not as a term of derision but as a badge of honor, and a new movement was born.

The Impressionist movement included the French painters Edouard Manet, Claude Monet, Pierre-Auguste Renoir, Edgar Degas, Paul Cezanne, and the American painter Mary Cassatt. The techniques and standards employed within the Impressionist movement varied widely, and though the artists shared a core of values, the real glue which bound the movement together was its spirit of rebellion and independence. This spirit is clear when you compare Impressionist paintings with traditional French paintings of the time. Traditional painters tended to paint rather serious scenes from history and mythology. Many Impressionist paintings feature pleasant scenes of urban life, celebrating the leisure time that the Industrial Revolution had won for the middle class, as shown in Renoir’s luminous paintingLuncheon of the Boating Party. Renoir once said that paintings should be “...likable, joyous, and pretty.” He said, “There are enough unpleasant things in this world. We don’t have to paint them as well.”

The Impressionists delighted in painting landscapes (except for Edgar Degas, who preferred painting indoor scenes, and Mary Cassatt, who mainly painted portraits of mothers and children).[A]. Traditional painters, too, painted landscapes, but their landscapes tended to be somber and dark.[B]The Impressionists’ landscapes sparkle with light.[C]Impressionists insisted that their works be “true to nature.”[D]When they painted landscapes, they carried their paints and canvases outdoors in order to capture the ever-changing light. Traditional painters generally made preliminary sketches outside but worked on the paintings themselves in their studios.

Questions 21-30

In April 1870, an art exhibit opened in Paris featuring famous and priceless works of art. However, at the time, no one knew that these paintings would one day be considered masterpieces. The paintings and the painters werevirtuallyunknown at the time and would remain that way for several years.

In the nineteenth century, French art was dominated by the Academy of Fine Arts. Every year the academy held an art show called Le Salon. In 1863, the Academy rejected one of the paintings of Edouard Manet. Manet and a group of other independent artists organized their own show, which they called Salon des Refuses (Salon of the Rejected) opened on April 15,1874. A newspaper critic named louis Leroy visited the gallery and was not pleased with what he saw. A painting by Claude Monet particularly enraged him. Leroy wrote that this piece, and in fact most of the pieces in the show, looked like “impressions” – a term for a preliminary, unfinished sketch made before a painting is done. Leroy’s newspaper review was jokingly called “The Exhibition of the Impressionists.” Within a few years of Leroy’s review, the term Impressionists had clearly stuck, not as a term of derision but as a badge of honor, and a new movement was born.

The Impressionist movement included the French painters Edouard Manet, Claude Monet, Pierre-Auguste Renoir, Edgar Degas, Paul Cezanne, and the American painter Mary Cassatt. The techniques and standards employed within the Impressionist movement varied widely, and though the artists shared a core of values, the real glue which bound the movement together was its spirit of rebellion and independence. This spirit is clear when you compare Impressionist paintings with traditional French paintings of the time. Traditional painters tended to paint rather serious scenes from history and mythology. Many Impressionist paintings feature pleasant scenes of urban life, celebrating the leisure time that the Industrial Revolution had won for the middle class, as shown in Renoir’s luminous paintingLuncheon of the Boating Party. Renoir once said that paintings should be “...likable, joyous, and pretty.” He said, “There are enough unpleasant things in this world. We don’t have to paint them as well.”

The Impressionists delighted in painting landscapes (except for Edgar Degas, who preferred painting indoor scenes, and Mary Cassatt, who mainly painted portraits of mothers and children).[A]. Traditional painters, too, painted landscapes, but their landscapes tended to be somber and dark.[B]The Impressionists’ landscapes sparkle with light.[C]Impressionists insisted that their works be “true to nature.”[D]When they painted landscapes, they carried their paints and canvases outdoors in order to capture the ever-changing light. Traditional painters generally made preliminary sketches outside but worked on the paintings themselves in their studios.

PASSAGE 4

Questions 31-40

In many countries, access tocapitalmarkets and low-interest loans is limited to large corporations and government monopolies. Small businesses and suppliers do not have access to liquid cash, and run the risk of failing to fulfil orders because they do not have the capital to purchase supplies for the products they make. As a result of this credit crisis, a practice called factoring has become popular in many areas of the world.

In factoring, a bank or financial organization – called a factor – gives a supplier cash in exchange for the right to collect payment when the supplier delivers an order to a buyer. In effect, the factor is buying the supplier’s Accounts Receivables at a discount off the face value of the accounts. The supplier benefits by receiving cash more quickly than it could from the buyer, but does not receive full payment for the accounts. The factor takes on a huge amount of risk by buying a supplier’s Accounts Receivables, as each individual buyer must be researched to determine what the risk is of that buyer defaulting on payment. In some cases, these buyers are so small or obscure that risk cannot be determined, and a factor is buying a complete unknown. In this case, if a buyerdefaults, the factor may go back to the supplier and ask for compensation for the default. Thus, factoring is risky for both the supplier and the factor.

In recent years, a new practice called reverse factoring has become increasingly popular because it shifts the anchor from supplier to buyer to virtually eliminate risk from the transaction. In reverse factoring, instead of buying a supplier’s Accounts Receivables, a factor provides loans to a single large buyer’s suppliers.

For example, a large corporation with an excellent credit rating and an extremely low chance of defaulting will have a list of suppliers. Many of these suppliers are small businesses without adequate access toliquidcash. When a factor contracts with the large buyer to supply payments to suppliers, the transaction works as follows: 1) the supplier signs an agreement to be entered into the factor’s system, 2) the supplier delivers an order to the buyer, 3) the buyer approves the delivery and signs off with the factor, 4) the factor pays the supplier a percentage (usually 80 to 90 percent) of the price of the order immediately, 5) the buyer pays the factor for the order at whatever terms the agreement states, 6) the factor pays the supplier the remaining balance for the order. The factor takes a percentage of the transaction and charges interest to the buyer.

By originating the transaction with a large, risk-free buyer instead of a supplier, reverse factoring improvesall three parties’positions and liquidity. The factor earns a steady interest rate with very little risk, and by working with large buyers, has access to large volumes of business at one time. The buyers gain the ability to pay on better terms for lower interest than they would with traditional capital market structures. Suppliers get paid far more rapidly and at a far lower interest rate than they would be able to with a traditional factoring or capital market arrangement.

PASSAGE 4

Questions 31-40

In many countries, access tocapitalmarkets and low-interest loans is limited to large corporations and government monopolies. Small businesses and suppliers do not have access to liquid cash, and run the risk of failing to fulfil orders because they do not have the capital to purchase supplies for the products they make. As a result of this credit crisis, a practice called factoring has become popular in many areas of the world.

In factoring, a bank or financial organization – called a factor – gives a supplier cash in exchange for the right to collect payment when the supplier delivers an order to a buyer. In effect, the factor is buying the supplier’s Accounts Receivables at a discount off the face value of the accounts. The supplier benefits by receiving cash more quickly than it could from the buyer, but does not receive full payment for the accounts. The factor takes on a huge amount of risk by buying a supplier’s Accounts Receivables, as each individual buyer must be researched to determine what the risk is of that buyer defaulting on payment. In some cases, these buyers are so small or obscure that risk cannot be determined, and a factor is buying a complete unknown. In this case, if a buyerdefaults, the factor may go back to the supplier and ask for compensation for the default. Thus, factoring is risky for both the supplier and the factor.

In recent years, a new practice called reverse factoring has become increasingly popular because it shifts the anchor from supplier to buyer to virtually eliminate risk from the transaction. In reverse factoring, instead of buying a supplier’s Accounts Receivables, a factor provides loans to a single large buyer’s suppliers.

For example, a large corporation with an excellent credit rating and an extremely low chance of defaulting will have a list of suppliers. Many of these suppliers are small businesses without adequate access toliquidcash. When a factor contracts with the large buyer to supply payments to suppliers, the transaction works as follows: 1) the supplier signs an agreement to be entered into the factor’s system, 2) the supplier delivers an order to the buyer, 3) the buyer approves the delivery and signs off with the factor, 4) the factor pays the supplier a percentage (usually 80 to 90 percent) of the price of the order immediately, 5) the buyer pays the factor for the order at whatever terms the agreement states, 6) the factor pays the supplier the remaining balance for the order. The factor takes a percentage of the transaction and charges interest to the buyer.

By originating the transaction with a large, risk-free buyer instead of a supplier, reverse factoring improvesall three parties’positions and liquidity. The factor earns a steady interest rate with very little risk, and by working with large buyers, has access to large volumes of business at one time. The buyers gain the ability to pay on better terms for lower interest than they would with traditional capital market structures. Suppliers get paid far more rapidly and at a far lower interest rate than they would be able to with a traditional factoring or capital market arrangement.

PASSAGE 4

Questions 31-40

In many countries, access tocapitalmarkets and low-interest loans is limited to large corporations and government monopolies. Small businesses and suppliers do not have access to liquid cash, and run the risk of failing to fulfil orders because they do not have the capital to purchase supplies for the products they make. As a result of this credit crisis, a practice called factoring has become popular in many areas of the world.

In factoring, a bank or financial organization – called a factor – gives a supplier cash in exchange for the right to collect payment when the supplier delivers an order to a buyer. In effect, the factor is buying the supplier’s Accounts Receivables at a discount off the face value of the accounts. The supplier benefits by receiving cash more quickly than it could from the buyer, but does not receive full payment for the accounts. The factor takes on a huge amount of risk by buying a supplier’s Accounts Receivables, as each individual buyer must be researched to determine what the risk is of that buyer defaulting on payment. In some cases, these buyers are so small or obscure that risk cannot be determined, and a factor is buying a complete unknown. In this case, if a buyerdefaults, the factor may go back to the supplier and ask for compensation for the default. Thus, factoring is risky for both the supplier and the factor.

In recent years, a new practice called reverse factoring has become increasingly popular because it shifts the anchor from supplier to buyer to virtually eliminate risk from the transaction. In reverse factoring, instead of buying a supplier’s Accounts Receivables, a factor provides loans to a single large buyer’s suppliers.

For example, a large corporation with an excellent credit rating and an extremely low chance of defaulting will have a list of suppliers. Many of these suppliers are small businesses without adequate access toliquidcash. When a factor contracts with the large buyer to supply payments to suppliers, the transaction works as follows: 1) the supplier signs an agreement to be entered into the factor’s system, 2) the supplier delivers an order to the buyer, 3) the buyer approves the delivery and signs off with the factor, 4) the factor pays the supplier a percentage (usually 80 to 90 percent) of the price of the order immediately, 5) the buyer pays the factor for the order at whatever terms the agreement states, 6) the factor pays the supplier the remaining balance for the order. The factor takes a percentage of the transaction and charges interest to the buyer.

By originating the transaction with a large, risk-free buyer instead of a supplier, reverse factoring improvesall three parties’positions and liquidity. The factor earns a steady interest rate with very little risk, and by working with large buyers, has access to large volumes of business at one time. The buyers gain the ability to pay on better terms for lower interest than they would with traditional capital market structures. Suppliers get paid far more rapidly and at a far lower interest rate than they would be able to with a traditional factoring or capital market arrangement.

PASSAGE 4

Questions 31-40

In many countries, access tocapitalmarkets and low-interest loans is limited to large corporations and government monopolies. Small businesses and suppliers do not have access to liquid cash, and run the risk of failing to fulfil orders because they do not have the capital to purchase supplies for the products they make. As a result of this credit crisis, a practice called factoring has become popular in many areas of the world.

In factoring, a bank or financial organization – called a factor – gives a supplier cash in exchange for the right to collect payment when the supplier delivers an order to a buyer. In effect, the factor is buying the supplier’s Accounts Receivables at a discount off the face value of the accounts. The supplier benefits by receiving cash more quickly than it could from the buyer, but does not receive full payment for the accounts. The factor takes on a huge amount of risk by buying a supplier’s Accounts Receivables, as each individual buyer must be researched to determine what the risk is of that buyer defaulting on payment. In some cases, these buyers are so small or obscure that risk cannot be determined, and a factor is buying a complete unknown. In this case, if a buyerdefaults, the factor may go back to the supplier and ask for compensation for the default. Thus, factoring is risky for both the supplier and the factor.

In recent years, a new practice called reverse factoring has become increasingly popular because it shifts the anchor from supplier to buyer to virtually eliminate risk from the transaction. In reverse factoring, instead of buying a supplier’s Accounts Receivables, a factor provides loans to a single large buyer’s suppliers.

For example, a large corporation with an excellent credit rating and an extremely low chance of defaulting will have a list of suppliers. Many of these suppliers are small businesses without adequate access toliquidcash. When a factor contracts with the large buyer to supply payments to suppliers, the transaction works as follows: 1) the supplier signs an agreement to be entered into the factor’s system, 2) the supplier delivers an order to the buyer, 3) the buyer approves the delivery and signs off with the factor, 4) the factor pays the supplier a percentage (usually 80 to 90 percent) of the price of the order immediately, 5) the buyer pays the factor for the order at whatever terms the agreement states, 6) the factor pays the supplier the remaining balance for the order. The factor takes a percentage of the transaction and charges interest to the buyer.

By originating the transaction with a large, risk-free buyer instead of a supplier, reverse factoring improvesall three parties’positions and liquidity. The factor earns a steady interest rate with very little risk, and by working with large buyers, has access to large volumes of business at one time. The buyers gain the ability to pay on better terms for lower interest than they would with traditional capital market structures. Suppliers get paid far more rapidly and at a far lower interest rate than they would be able to with a traditional factoring or capital market arrangement.

PASSAGE 4

Questions 31-40

In many countries, access tocapitalmarkets and low-interest loans is limited to large corporations and government monopolies. Small businesses and suppliers do not have access to liquid cash, and run the risk of failing to fulfil orders because they do not have the capital to purchase supplies for the products they make. As a result of this credit crisis, a practice called factoring has become popular in many areas of the world.

In factoring, a bank or financial organization – called a factor – gives a supplier cash in exchange for the right to collect payment when the supplier delivers an order to a buyer. In effect, the factor is buying the supplier’s Accounts Receivables at a discount off the face value of the accounts. The supplier benefits by receiving cash more quickly than it could from the buyer, but does not receive full payment for the accounts. The factor takes on a huge amount of risk by buying a supplier’s Accounts Receivables, as each individual buyer must be researched to determine what the risk is of that buyer defaulting on payment. In some cases, these buyers are so small or obscure that risk cannot be determined, and a factor is buying a complete unknown. In this case, if a buyerdefaults, the factor may go back to the supplier and ask for compensation for the default. Thus, factoring is risky for both the supplier and the factor.

In recent years, a new practice called reverse factoring has become increasingly popular because it shifts the anchor from supplier to buyer to virtually eliminate risk from the transaction. In reverse factoring, instead of buying a supplier’s Accounts Receivables, a factor provides loans to a single large buyer’s suppliers.

For example, a large corporation with an excellent credit rating and an extremely low chance of defaulting will have a list of suppliers. Many of these suppliers are small businesses without adequate access toliquidcash. When a factor contracts with the large buyer to supply payments to suppliers, the transaction works as follows: 1) the supplier signs an agreement to be entered into the factor’s system, 2) the supplier delivers an order to the buyer, 3) the buyer approves the delivery and signs off with the factor, 4) the factor pays the supplier a percentage (usually 80 to 90 percent) of the price of the order immediately, 5) the buyer pays the factor for the order at whatever terms the agreement states, 6) the factor pays the supplier the remaining balance for the order. The factor takes a percentage of the transaction and charges interest to the buyer.

By originating the transaction with a large, risk-free buyer instead of a supplier, reverse factoring improvesall three parties’positions and liquidity. The factor earns a steady interest rate with very little risk, and by working with large buyers, has access to large volumes of business at one time. The buyers gain the ability to pay on better terms for lower interest than they would with traditional capital market structures. Suppliers get paid far more rapidly and at a far lower interest rate than they would be able to with a traditional factoring or capital market arrangement.

PASSAGE 4

Questions 31-40

In many countries, access tocapitalmarkets and low-interest loans is limited to large corporations and government monopolies. Small businesses and suppliers do not have access to liquid cash, and run the risk of failing to fulfil orders because they do not have the capital to purchase supplies for the products they make. As a result of this credit crisis, a practice called factoring has become popular in many areas of the world.

In factoring, a bank or financial organization – called a factor – gives a supplier cash in exchange for the right to collect payment when the supplier delivers an order to a buyer. In effect, the factor is buying the supplier’s Accounts Receivables at a discount off the face value of the accounts. The supplier benefits by receiving cash more quickly than it could from the buyer, but does not receive full payment for the accounts. The factor takes on a huge amount of risk by buying a supplier’s Accounts Receivables, as each individual buyer must be researched to determine what the risk is of that buyer defaulting on payment. In some cases, these buyers are so small or obscure that risk cannot be determined, and a factor is buying a complete unknown. In this case, if a buyerdefaults, the factor may go back to the supplier and ask for compensation for the default. Thus, factoring is risky for both the supplier and the factor.

In recent years, a new practice called reverse factoring has become increasingly popular because it shifts the anchor from supplier to buyer to virtually eliminate risk from the transaction. In reverse factoring, instead of buying a supplier’s Accounts Receivables, a factor provides loans to a single large buyer’s suppliers.

For example, a large corporation with an excellent credit rating and an extremely low chance of defaulting will have a list of suppliers. Many of these suppliers are small businesses without adequate access toliquidcash. When a factor contracts with the large buyer to supply payments to suppliers, the transaction works as follows: 1) the supplier signs an agreement to be entered into the factor’s system, 2) the supplier delivers an order to the buyer, 3) the buyer approves the delivery and signs off with the factor, 4) the factor pays the supplier a percentage (usually 80 to 90 percent) of the price of the order immediately, 5) the buyer pays the factor for the order at whatever terms the agreement states, 6) the factor pays the supplier the remaining balance for the order. The factor takes a percentage of the transaction and charges interest to the buyer.

By originating the transaction with a large, risk-free buyer instead of a supplier, reverse factoring improvesall three parties’positions and liquidity. The factor earns a steady interest rate with very little risk, and by working with large buyers, has access to large volumes of business at one time. The buyers gain the ability to pay on better terms for lower interest than they would with traditional capital market structures. Suppliers get paid far more rapidly and at a far lower interest rate than they would be able to with a traditional factoring or capital market arrangement.

PASSAGE 4

Questions 31-40

In many countries, access tocapitalmarkets and low-interest loans is limited to large corporations and government monopolies. Small businesses and suppliers do not have access to liquid cash, and run the risk of failing to fulfil orders because they do not have the capital to purchase supplies for the products they make. As a result of this credit crisis, a practice called factoring has become popular in many areas of the world.

In factoring, a bank or financial organization – called a factor – gives a supplier cash in exchange for the right to collect payment when the supplier delivers an order to a buyer. In effect, the factor is buying the supplier’s Accounts Receivables at a discount off the face value of the accounts. The supplier benefits by receiving cash more quickly than it could from the buyer, but does not receive full payment for the accounts. The factor takes on a huge amount of risk by buying a supplier’s Accounts Receivables, as each individual buyer must be researched to determine what the risk is of that buyer defaulting on payment. In some cases, these buyers are so small or obscure that risk cannot be determined, and a factor is buying a complete unknown. In this case, if a buyerdefaults, the factor may go back to the supplier and ask for compensation for the default. Thus, factoring is risky for both the supplier and the factor.

In recent years, a new practice called reverse factoring has become increasingly popular because it shifts the anchor from supplier to buyer to virtually eliminate risk from the transaction. In reverse factoring, instead of buying a supplier’s Accounts Receivables, a factor provides loans to a single large buyer’s suppliers.

For example, a large corporation with an excellent credit rating and an extremely low chance of defaulting will have a list of suppliers. Many of these suppliers are small businesses without adequate access toliquidcash. When a factor contracts with the large buyer to supply payments to suppliers, the transaction works as follows: 1) the supplier signs an agreement to be entered into the factor’s system, 2) the supplier delivers an order to the buyer, 3) the buyer approves the delivery and signs off with the factor, 4) the factor pays the supplier a percentage (usually 80 to 90 percent) of the price of the order immediately, 5) the buyer pays the factor for the order at whatever terms the agreement states, 6) the factor pays the supplier the remaining balance for the order. The factor takes a percentage of the transaction and charges interest to the buyer.

By originating the transaction with a large, risk-free buyer instead of a supplier, reverse factoring improvesall three parties’positions and liquidity. The factor earns a steady interest rate with very little risk, and by working with large buyers, has access to large volumes of business at one time. The buyers gain the ability to pay on better terms for lower interest than they would with traditional capital market structures. Suppliers get paid far more rapidly and at a far lower interest rate than they would be able to with a traditional factoring or capital market arrangement.

PASSAGE 4

Questions 31-40

In many countries, access tocapitalmarkets and low-interest loans is limited to large corporations and government monopolies. Small businesses and suppliers do not have access to liquid cash, and run the risk of failing to fulfil orders because they do not have the capital to purchase supplies for the products they make. As a result of this credit crisis, a practice called factoring has become popular in many areas of the world.

In factoring, a bank or financial organization – called a factor – gives a supplier cash in exchange for the right to collect payment when the supplier delivers an order to a buyer. In effect, the factor is buying the supplier’s Accounts Receivables at a discount off the face value of the accounts. The supplier benefits by receiving cash more quickly than it could from the buyer, but does not receive full payment for the accounts. The factor takes on a huge amount of risk by buying a supplier’s Accounts Receivables, as each individual buyer must be researched to determine what the risk is of that buyer defaulting on payment. In some cases, these buyers are so small or obscure that risk cannot be determined, and a factor is buying a complete unknown. In this case, if a buyerdefaults, the factor may go back to the supplier and ask for compensation for the default. Thus, factoring is risky for both the supplier and the factor.

In recent years, a new practice called reverse factoring has become increasingly popular because it shifts the anchor from supplier to buyer to virtually eliminate risk from the transaction. In reverse factoring, instead of buying a supplier’s Accounts Receivables, a factor provides loans to a single large buyer’s suppliers.

For example, a large corporation with an excellent credit rating and an extremely low chance of defaulting will have a list of suppliers. Many of these suppliers are small businesses without adequate access toliquidcash. When a factor contracts with the large buyer to supply payments to suppliers, the transaction works as follows: 1) the supplier signs an agreement to be entered into the factor’s system, 2) the supplier delivers an order to the buyer, 3) the buyer approves the delivery and signs off with the factor, 4) the factor pays the supplier a percentage (usually 80 to 90 percent) of the price of the order immediately, 5) the buyer pays the factor for the order at whatever terms the agreement states, 6) the factor pays the supplier the remaining balance for the order. The factor takes a percentage of the transaction and charges interest to the buyer.

By originating the transaction with a large, risk-free buyer instead of a supplier, reverse factoring improvesall three parties’positions and liquidity. The factor earns a steady interest rate with very little risk, and by working with large buyers, has access to large volumes of business at one time. The buyers gain the ability to pay on better terms for lower interest than they would with traditional capital market structures. Suppliers get paid far more rapidly and at a far lower interest rate than they would be able to with a traditional factoring or capital market arrangement.

PASSAGE 4

Questions 31-40

In many countries, access tocapitalmarkets and low-interest loans is limited to large corporations and government monopolies. Small businesses and suppliers do not have access to liquid cash, and run the risk of failing to fulfil orders because they do not have the capital to purchase supplies for the products they make. As a result of this credit crisis, a practice called factoring has become popular in many areas of the world.

In factoring, a bank or financial organization – called a factor – gives a supplier cash in exchange for the right to collect payment when the supplier delivers an order to a buyer. In effect, the factor is buying the supplier’s Accounts Receivables at a discount off the face value of the accounts. The supplier benefits by receiving cash more quickly than it could from the buyer, but does not receive full payment for the accounts. The factor takes on a huge amount of risk by buying a supplier’s Accounts Receivables, as each individual buyer must be researched to determine what the risk is of that buyer defaulting on payment. In some cases, these buyers are so small or obscure that risk cannot be determined, and a factor is buying a complete unknown. In this case, if a buyerdefaults, the factor may go back to the supplier and ask for compensation for the default. Thus, factoring is risky for both the supplier and the factor.

In recent years, a new practice called reverse factoring has become increasingly popular because it shifts the anchor from supplier to buyer to virtually eliminate risk from the transaction. In reverse factoring, instead of buying a supplier’s Accounts Receivables, a factor provides loans to a single large buyer’s suppliers.

For example, a large corporation with an excellent credit rating and an extremely low chance of defaulting will have a list of suppliers. Many of these suppliers are small businesses without adequate access toliquidcash. When a factor contracts with the large buyer to supply payments to suppliers, the transaction works as follows: 1) the supplier signs an agreement to be entered into the factor’s system, 2) the supplier delivers an order to the buyer, 3) the buyer approves the delivery and signs off with the factor, 4) the factor pays the supplier a percentage (usually 80 to 90 percent) of the price of the order immediately, 5) the buyer pays the factor for the order at whatever terms the agreement states, 6) the factor pays the supplier the remaining balance for the order. The factor takes a percentage of the transaction and charges interest to the buyer.

By originating the transaction with a large, risk-free buyer instead of a supplier, reverse factoring improvesall three parties’positions and liquidity. The factor earns a steady interest rate with very little risk, and by working with large buyers, has access to large volumes of business at one time. The buyers gain the ability to pay on better terms for lower interest than they would with traditional capital market structures. Suppliers get paid far more rapidly and at a far lower interest rate than they would be able to with a traditional factoring or capital market arrangement.

PASSAGE 4

Questions 31-40

In many countries, access tocapitalmarkets and low-interest loans is limited to large corporations and government monopolies. Small businesses and suppliers do not have access to liquid cash, and run the risk of failing to fulfil orders because they do not have the capital to purchase supplies for the products they make. As a result of this credit crisis, a practice called factoring has become popular in many areas of the world.

In factoring, a bank or financial organization – called a factor – gives a supplier cash in exchange for the right to collect payment when the supplier delivers an order to a buyer. In effect, the factor is buying the supplier’s Accounts Receivables at a discount off the face value of the accounts. The supplier benefits by receiving cash more quickly than it could from the buyer, but does not receive full payment for the accounts. The factor takes on a huge amount of risk by buying a supplier’s Accounts Receivables, as each individual buyer must be researched to determine what the risk is of that buyer defaulting on payment. In some cases, these buyers are so small or obscure that risk cannot be determined, and a factor is buying a complete unknown. In this case, if a buyerdefaults, the factor may go back to the supplier and ask for compensation for the default. Thus, factoring is risky for both the supplier and the factor.

In recent years, a new practice called reverse factoring has become increasingly popular because it shifts the anchor from supplier to buyer to virtually eliminate risk from the transaction. In reverse factoring, instead of buying a supplier’s Accounts Receivables, a factor provides loans to a single large buyer’s suppliers.

For example, a large corporation with an excellent credit rating and an extremely low chance of defaulting will have a list of suppliers. Many of these suppliers are small businesses without adequate access toliquidcash. When a factor contracts with the large buyer to supply payments to suppliers, the transaction works as follows: 1) the supplier signs an agreement to be entered into the factor’s system, 2) the supplier delivers an order to the buyer, 3) the buyer approves the delivery and signs off with the factor, 4) the factor pays the supplier a percentage (usually 80 to 90 percent) of the price of the order immediately, 5) the buyer pays the factor for the order at whatever terms the agreement states, 6) the factor pays the supplier the remaining balance for the order. The factor takes a percentage of the transaction and charges interest to the buyer.

By originating the transaction with a large, risk-free buyer instead of a supplier, reverse factoring improvesall three parties’positions and liquidity. The factor earns a steady interest rate with very little risk, and by working with large buyers, has access to large volumes of business at one time. The buyers gain the ability to pay on better terms for lower interest than they would with traditional capital market structures. Suppliers get paid far more rapidly and at a far lower interest rate than they would be able to with a traditional factoring or capital market arrangement.