A Business That Needs Short-Term Credit in Excess of Its

question 111

Multiple Choice

A business that needs short-term credit in excess of its regular line of bank credit may:

• A) sell common stock to the bank with a repurchase agreement
• B) subordinate the interests of the owners to the bank's additional loans
• C) make limited use of overdrafts
• D) pledge accounts receivable as specific collateral for an additional loan

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Definitions:

Organizational Learning

A systematic approach to improving an organization's collective expertise and problem-solving abilities by leveraging knowledge.

Contingency Management

A behavioral strategy that modifies behavior by altering the consequences, typically through rewards or punishments, based on performance.

Social Cognitive Theory

A theoretical framework that describes the role of cognitive, behavioral, and environmental influences on an individual's learning and behavior.

Climate For Transfer

The work environment or organizational culture that supports or hinders the application of newly learned skills or knowledge to the job.