An Operating Line of Credit

question 53

Multiple Choice

An operating line of credit

• A) is a non-current liability.
• B) is required by all companies.
• C) helps companies manage temporary cash shortages.
• D) is usually required by the bank in case a company is unable to repay a loan.

---

Definitions:

Planning Process

A systematic series of steps taken to achieve a specific aim, including goal setting, strategy development, and resource allocation.

Benchmarking

The practice of comparing business processes and performance metrics to industry bests and best practices from other companies.

External Comparisons

The act of evaluating one's performance, practices, or characteristics by measuring them against those of other entities or benchmarks.

Current Performance

The assessment of an organization, employee, or system's present output or results, often compared to past performance or predetermined objectives.