Kenneth wants to start a new business. To get start-up capital, he takes a short-term loan from a bank. The bank agrees to provide him the agreed-upon funds as per a legally binding commitment. However, the bank requires Kenneth to pay interest on any fund he borrows and a commitment fee based on the unused amount of funds. Which of the following short-term financing sources does Kenneth utilize to fund his business in the given scenario?
A. Factoring
B. Commercial paper
C. Trade credit
D. Revolving credit agreement
Answer: D
You might also like to view...
In Hong Kong and Singapore, efficient postal services, highly educated populations, wide use of credit cards, and high per capita income are attracting the attention of catalog marketers
Indicate whether the statement is true or false
Which of the following is not a specific responsibility of an audit committee as mandated by the NYSE?
a. Discussing the company's financial statements with the external auditor. b. Setting hiring policies for former employees of the external auditor. c. Creating and implementing internal controls. d. Discussing financial information provided to analysts.
Deciding whether to present scales as vertical or horizontal is related to which of the non-comparative itemized rating scale decisions?
A) number of scale categories B) physical form or configuration C) odd or even number of categories D) nature and degree of verbal description
An unconscionable contract is a contract entered into unconsciously.
Answer the following statement true (T) or false (F)