Which of the Following Is NOT a Reason Why a Company

question 38

Multiple Choice

Which of the following is NOT a reason why a company may choose to pledge accounts receivable?

• A) A lower interest rate.
• B) The borrowing capacity fluctuates with accounts receivable.
• C) It provides another source of financing for companies with lower credit ratings.
• D) All of these are reasons for pledging accounts receivable.

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Definitions:

Fascist Movements

Political ideologies or organizations that emphasize authoritarian nationalism, dictatorial power, and suppression of opposition.

20th Century

The period extending from January 1, 1901, to December 31, 2000, marked by significant global changes in technology, politics, and culture.

Social Facilitation Theory

Proposition that the presence of others increases the dominant response tendency.

Dominant Response

A behavior that takes very little effort or thought and is frequently the default or habitual response to a specific situation.