Bank Lines of Credit Must Be Judiciously Requested Because the Lines

question 60

Multiple Choice

Bank lines of credit must be judiciously requested because the lines often:

• A)Accrue interest regardless of whether funds are borrowed
• B)Require payment of a commitment fee to establish
• C)Appear as a liability on the firm's balance sheet
• D)Have a negative impact on the firm's credit history

---

Definitions:

Settlement

The resolution of a dispute or lawsuit outside of court through negotiation, which results in an agreement that both parties consent to.

Motion To Dismiss

A legal motion filed by a defendant, requesting the court to dismiss a case on certain grounds before going to trial.

Summary Judgment

A legal procedure where the court makes a decision based on statements and evidence without going to trial.

Aesthetic Pollution

The degradation of a visual or natural environment, making it unappealing or less desirable, often due to human-made structures or waste.