Asked by
Manisha Patel
on Dec 01, 2024
Verified
Which of the following provides financing that can vary in size over the life of a loan?
A) Revolving credit agreement
B) Commercial paper
C) Single payment note
D) a and b
E) None of the above
Revolving Credit Agreement
A legal financial contract between a lender and a borrower that allows the borrower to access funds up to a pre-approved credit limit, repay, and withdraw again.
Commercial Paper
An unsecured, short-term debt instrument issued by corporations, typically for financing accounts receivable and inventories.
Financing
Financing is the process of providing funds for business activities, making purchases, or investing.
- Recognize and assess the origins of short-term funding and their associated expenses.
- Comprehend the stipulations of various forms of short-term lending contracts.
Verified Answer
DD
Learning Objectives
- Recognize and assess the origins of short-term funding and their associated expenses.
- Comprehend the stipulations of various forms of short-term lending contracts.