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:

Cystic Fibrosis

A hereditary disorder affecting the exocrine glands, causing the production of abnormally thick mucus, leading to blockage of the pancreatic ducts, intestines, and bronchi and resulting in respiratory and digestive problems.

Bronchoscopy

A medical procedure that allows doctors to look at the airways and lungs using a thin, lighted tube.

Nonproductive Cough

A dry cough that does not produce mucus or phlegm from the respiratory tract.

Wheezing

A high-pitched whistling sound made while breathing, typically indicating a narrowing or obstruction of the airways.