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

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Definitions:

Electronic Commerce

The buying and selling of goods and services, or the transmitting of funds or data, over an electronic network, primarily the internet.

2001 Revisions

Modifications or updates made in the year 2001 to laws, regulations, or documents.

Article 1

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Implied in Fact Contract

A contract formed by actions and circumstances that indicate an agreement has been made, even though no explicit contract exists.