Which of the Following Statements Is Correct

question 53

Multiple Choice

Which of the following statements is correct?

• A)An inventory blanket lien gives the lending institution a lien against all of the borrower's inventories. However, the borrower must maintain a base inventory as collateral equal to the level that existed when the loan was granted.
• B)A disadvantage of trust receipt financing is the requirement that a trust receipt be issued for specific goods. As a result of this inconvenience, warehousing has become popular as a method of securing loans with inventory.
• C)The fixed costs of a field warehousing arrangement are relatively small and, thus, many small firms make such arrangements.
• D)The use of inventory financing, especially field warehouse financing, as a source of funds for firms has the advantage of small fixed costs but the disadvantage of a lack of spontaneous growth of funds as inventories increase.

Recognize the significance of laboratory blood tests in diagnosing blood disorders like anemia, thrombocytopenia, polycythemia vera, and infections.

Understand the concept of Net Present Value (NPV) and how it is calculated in various financial decisions.

Identify the financial implications of lifestyle choices, such as smoking, on insurance premiums, earnings, and expenses.

Evaluate investment decisions by analyzing the expected return and the associated risk.

---

Definitions:

BAS

Behavioral Activation System, which is a neurological system thought to regulate motivation towards rewards and positive reinforcement.

BIS

Behavioral Inhibition System, a concept in psychology that refers to the brain mechanism which predicts an individual's response to anxiety-relevant cues in the environment.

Extraversion

A personality trait characterized by outgoingness, high levels of social engagement, and a tendency to seek stimulation in the company of others.

Introversion

A personality trait typified by a focus on internal feelings rather than external sources of stimulation, often manifesting in a preference for solitude or small groups.