Kenneth Wants to Start a New Business

question 77

Multiple Choice

Kenneth wants to start a new business. To get start-up capital, he takes a short-term loan from a bank. The bank agrees to provide him the agreed-upon funds as per a legally binding commitment. However, the bank requires Kenneth to pay interest on any fund he borrows and a commitment fee based on the unused amount of funds. Which of the following short-term financing sources does Kenneth utilize to fund his business in the given scenario?

• A) Factoring
• B) Commercial paper
• C) Trade credit
• D) Revolving credit agreement

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Definitions:

Sensitivity

Refers to the capacity of an organism or system to respond to stimuli or changes in the environment.

Gender Awareness

The understanding and recognition of gender and gender differences, often developing in early childhood.

Concrete External Traits

Observable and tangible characteristics determined by an individual's genetic makeup.

Authoritarian Parenting

A parenting style defined by high demands and low responsiveness, where parents impose strict rules and expect obedience without questioning.