Which One of the Following Statements Is Correct

question 279

Multiple Choice

Which one of the following statements is correct?

• A) A farmer generally uses a type of financing that employs trust receipts to provide financing during the growing season.
• B) A third-party inventory manager is generally involved with the lender and the borrower in a floor plan arrangement.
• C) A drug store is more apt to have a financing arrangement involving trust receipts than one involving a general security agreement.
• D) Floor plan arrangements are most applicable to large, easily identifiable types of inventory.
• E) A direct loan from a bank is generally less expensive than a loan involving commercial paper.

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Definitions:

Anticipated

The expected occurrence or expectation of an event, often used in the context of financial forecasts or income.

Annually

Occurring once every year or relating to a period of one year.

Annually

Annually means once every year.

Investors

Individuals or institutions that allocate capital with the expectation of receiving financial returns, often involving the purchase of securities.