Which of the Following Sources of Short-Term Financing Is Likely

question 150

Multiple Choice

Which of the following sources of short-term financing is likely to have the lowest interest rate?

• A) accounts receivable loan (pledging of accounts receivable)
• B) line of credit
• C) line of credit with a compensating balance
• D) commercial paper

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Definitions:

Executives

Senior-level employees responsible for making decisions and managing the operations within an organization.

Transnationals

Companies that operate on a global scale, transcending national boundaries in their business operations and strategic planning.

Culture Shock

A feeling of confusion, doubt, or nervousness arising from being placed in a new or significantly different cultural environment.

Child Labour

The employment of children in any work that deprives them of their childhood, interferes with their ability to attend regular school, and is mentally, physically, socially, or morally harmful.