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:

Expect Good Grades

The anticipation or belief that one will receive high marks or succeed academically.

Conditioned Response

A learned reaction to a previously neutral stimulus that has been repeatedly presented along with an unconditioned stimulus.

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A phrase describing the action birds, and some insects, perform to take off, fly, or maintain altitude by moving their wings up and down.

Shock Avoidance

A behavioral principle where organisms learn to perform actions to prevent or avoid an unpleasant or painful stimulus.