In the Context of Small Businesses, Which of the Following

question 51

Multiple Choice

In the context of small businesses, which of the following is true of asset-based financing?

• A) All asset-based loans are financed against inventory.
• B) It accepts the assets of a firm as collateral in exchange for a loan.
• C) Of all assets, inventory is considered the most liquid of a service company's assets.
• D) It is a form of debt security with a standard denomination and method of interest payment.

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Definitions:

Chloroplasts

Organelles found in plant cells and some algae that conduct photosynthesis, absorbing sunlight and converting it into energy while producing oxygen as a byproduct.

Cellular Respiration

The process by which cells convert glucose and oxygen into energy, carbon dioxide, and water.

Photosynthesis

The process by which green plants and some other organisms use sunlight to synthesize nutrients from carbon dioxide and water, producing oxygen as a byproduct.

Oxygen

A chemical element with symbol O, essential for cellular respiration in most living organisms and a major component of Earth's atmosphere.