When the Finished Goods Inventory Is the Asset Base for a Loan

question 90

Multiple Choice

When the finished goods inventory is the asset base for a loan:

• A) a trust receipt is not generally used.
• B) factoring may be arranged.
• C) about 50 percent of it can be financed.
• D) all of the inventory can be financed.

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Definitions:

Asbestosis

A lung disease resulting from the inhalation of asbestos particles, causing scarring of lung tissue.

Common Cold

A viral infectious disease of the upper respiratory tract that primarily affects the nose, throat, sinuses, and larynx, leading to symptoms like coughing and sneezing.

Influenza

A highly contagious viral infection that affects the respiratory system, commonly known as the flu.

Allergy

An immune system response to a foreign substance (allergen) that is not typically harmful to the body, which can cause various symptoms.