Herschel George Is a Soybean Farmer

question 92

Multiple Choice

Herschel George is a soybean farmer.He has arranged a business loan with terms that guarantee that he can borrow up to $30,000 whenever he needs it within the next year.He must pay interest only on the unpaid loan balance.George has arranged a:

• A)collateralized loan
• B)line of credit
• C)credit-line loan
• D)single-payment note
• E)revolving credit agreement

---

Definitions:

Noncontrolling Interest

Refers to the portion of equity in a subsidiary not attributable directly or indirectly to the parent company.

Acquisition-Date Fair Value

The fair value of an asset or liability at the date it is acquired in a business combination.

Combined Book Value

The total value of a company's assets as recorded in its financial books, excluding intangible items and liabilities.