Answer the following statements true (T) or false (F)
1. Unlike the spontaneous sources of unsecured short-term financing, bank loans are negotiated and result from deliberate actions taken by the financial manager.
2. Self-liquidating loans are intended merely to carry a firm through seasonal peaks in financing needs that are due primarily to buildups of accounts receivable and inventory.
3. Self-liquidating loans are mainly invested in productive assets (i.e., fixed assets) which provide the mechanism through which the loan is repaid.
4. The major attraction of a line of credit from the bank's point of view is that it eliminates the need to examine the creditworthiness of a customer each time it borrows money within the year.
5. The interest rate on a line of credit is normally stated as a fixed rate-the prime rate.
1. TRUE
2. TRUE
3. FALSE
4. TRUE
5. FALSE
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A) independent variables. B) interdependent variables. C) dependent variables. D) extraneous variables. E) B and D
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A) Business-to-business marketing B) Just in time (JIT) marketing C) Single sourcing D) Retailing E) Outsourcing
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a. 0.1359 b. 0.8185 c. 0.3413 d. 0.4772
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