Tres Has Received a Large Contract and Has Taken a Loan

question 40

Multiple Choice

Tres has received a large contract and has taken a loan to buy inventory.Considering the timing of the loan,Tres may be ____________ to complete the contract.

• A)selling short
• B)pledging receivables
• C)mortgaging
• D)factoring

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Definitions:

Differential Case

The outer housing that encloses the differential mechanism in a vehicle, protecting its gears and components.

Differential Action

The mechanism in a vehicle's differential that allows two drive wheels to rotate at different speeds while turning, improving traction and handling.

Outside Wheel

In vehicular turns, the wheel farthest from the turn center, which travels a greater distance and may experience more wear.

Inside Wheel

The wheel on the inside of a turn or curve, which generally travels a shorter distance than the outside wheel, affecting vehicle dynamics.