Discuss and contrast the three types of loans discussed in the text that use inventory as collateral: floating inventory liens, trust receipt inventory loans, and warehouse receipt loans.
What will be an ideal response?
A floating inventory lien is certainly the easiest for a firm since the lender just takes a lien against the firm's entire inventory and the borrower typically does not have to give the lender a precise list of what constitutes inventory on a regular basis. Trust receipt financing requires the borrower and lender to specify the exact inventory that backs up each advance. This can be a time-consuming and cumbersome type of financing for the firm. Field warehouse financing requires an independent company to supervise the collateral for the lender. A terminal warehouse is a central warehouse storing the merchandise of various customers.
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Answer the following statements true (T) or false (F)
The income statement for Nighty Night, Inc. is divided into two product lines, blankets and pillows, as follows:
Nighty Night, Inc. should eliminate the pillows product line only, if by doing so, they can eliminate more than $70,000 of fixed costs.
A sales forecast for the coming year would reflect
A) the influence of any events that might materially affect that trend. B) any past trend which is expected to continue. C) both A and B. D) neither A nor B.
Obtaining primary and secondary data would take place during which stage of the five-step marketing research approach?
A. develop the research plan B. define the problem C. collect relevant information D. develop findings E. take marketing actions
In QVC v. MJC America, where QVC sued for breach of contract after electric heaters delivered by MJC were shown to have defects, the trial court:
a. MJC was liable to QVC for a number of kinds of damages b. MJC was liable to QVC for a number of kinds of damages c. MJC did not make the heaters, a supplier in China did, so QVC would have to sue the maker for damages d. MJC did not make the heaters, a supplier named Soleus obtained them from China, so QVC would have to sue Soleus e. none of the other choices are correct