All Star Sporting Goods Seeks Short-Term Financing to Complete Much-Needed

question 46

Multiple Choice

All Star Sporting Goods seeks short-term financing to complete much-needed repairs on its retail store. All Star decides to offer up its inventory as collateral in return for a $20,000 from the bank. Which of the following does this exemplify?

• A) trade credit
• B) a secured loan
• C) a promissory note
• D) line of credit

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Definitions:

Triglyceride

A triglyceride is a type of fat (lipid) found in the blood, originating from the diet and stored in fat cells, used by the body for energy.

Fatty Acid

Long hydrocarbon chains that are a major component of fats and are used in cells as a source of energy.

Enzymatic Activity

The process and rate at which enzymes catalyze reactions, converting substrates into different molecules.

Freezing

The process of a liquid turning into a solid phase as its temperature is lowered below its freezing point.