If a Firm Has Set Up a Revolving Credit Agreement

question 12

True/False

If a firm has set up a revolving credit agreement with a bank, the risk to the firm of being unable to obtain funds when needed is lower than if it had an informal line of credit.

---

Definitions:

Sample

A small part or quantity intended to show what the whole is like or to be used for testing and analysis.

Population

The whole group of individuals or entities that is the subject of statistical analysis.

Statistical Base

The underlying data or information used for statistical analysis or for forming conclusions.

Numerator

The top number in a fraction, representing the number of equal parts being considered, as opposed to the denominator which indicates the total number of parts.