The Primary Difference Between a Line of Credit and a Revolving

question 38

Multiple Choice

The primary difference between a line of credit and a revolving credit arrangement is the:

• A) type of collateral used to secure the loan.
• B) length of the time period covered by the loan agreement.
• C) fact that the line of credit is a secured loan and the revolving credit arrangement is unsecured.
• D) fact that the line of credit is an unsecured loan and the revolving credit arrangement is secured.
• E) line of credit is a long-term financing agreement while the revolving credit arrangement is a short-term financing agreement.

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Definitions:

Largest Purchasers

Entities or individuals that buy goods or services in large quantities, often having significant influence over market prices.

Payroll Companies

Businesses that specialize in managing the compensation of employees for other companies, including wages, taxes, and other deductions.

New Buy

A purchasing situation in which a buyer or company makes a significant purchase of a product or service for the first time, often involving considerable research and decision-making.

T.J.Maxx

A subsidiary of TJX Companies, Inc., known for selling discounted brand-name clothing, footwear, and home goods.