A Line of Credit with a Bank Enables a Company

question 93

Multiple Choice

A line of credit with a bank enables a company to:

• A) Borrow money on demand for short periods of time at specific interest rates
• B) Borrow money for long periods of time with fluctuating interest rates
• C) Borrow money on demand for long periods of time
• D) Borrow money for long periods of time at specific interest rates

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Definitions:

Enforce Contracts

The process of legally ensuring that the terms of a contract are carried out as agreed, often involving judicial or regulatory intervention.

External Benefits

Advantages or positive effects generated by an economic activity that benefit individuals or entities not directly involved in the activity.

Market Forces

The natural forces of supply and demand that govern the functioning of the free market, determining prices and production levels.

Rival

Describes a good or resource that cannot be consumed by more than one person or entity at the same time without diminishing its availability to another.