The Primary Difference Between a Line of Credit and a Revolving

question 77

Multiple Choice

The primary difference between a line of credit and a revolving credit arrangement is the:

• A) type of collateral used to secure the loan.
• B) length of the credit period.
• C) fact that the line of credit is a secured loan and the revolving credit arrangement is unsecured.
• D) fact that the line of credit is an unsecured loan and the revolving credit arrangement is secured.
• E) loan's classification as either a committed or a non-committed loan.

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Definitions:

Enterprise

A business or company, especially when considered in terms of its size, complexity, or organizational structure.

Downstream Partners

Companies or entities that perform activities in the later stages of the supply chain, closer to the end consumers, such as distributors and retailers.

Upstream Partners

Businesses or individuals that provide raw materials, components, or services to another company for the production of goods.

Production Rate

is the speed at which goods are manufactured or produced in a given period, often measured in units per hour or products per day.