Which One of the Following Statements Is Correct

question 8

Multiple Choice

Which one of the following statements is correct?

• A) A farmer generally uses a type of financing that employs trust receipts to provide financing during the growing season.
• B) A third-party inventory manager is generally involved with the lender and the borrower in a floor plan arrangement.
• C) A drug store is more apt to have a financing arrangement involving trust receipts than one involving a blanket lien.
• D) Floor plan arrangements are most applicable to large, easily identifiable types of inventory.
• E) A direct loan from a bank is generally less expensive than a loan involving commercial paper.

Master the basic grammar and punctuation rules for professional writing.

Identify the correct usage of vocabulary, including capitalization norms in professional communication.

Understand the functions of various punctuation marks in the English language.

Identify the different parts of speech and their definitions.

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Definitions:

IRR

The Internal Rate of Return is a financial measurement employed to gauge the potential profit of investments.

Flexibility Option

An investment option that provides the holder with the ability to respond to changes in the financial market or business environment.

Surrogate Beta

Surrogate beta is a method used in finance to estimate the beta of a project or investment by using the beta of a similar, publicly traded company or project as a proxy.

Pure Play Method

A valuation technique that involves comparing the firm of interest to another company that has a single line of business similar to the target company.