A Line of Credit Does Not Resemble a Personal Credit

question 79

True/False

A line of credit does not resemble a personal credit card.

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Definitions:

Diversification

A strategy of investing in a variety of assets to reduce exposure to any single asset or risk.

Different Business Area

Various sectors or divisions within a business environment that each focus on distinct operational or market-related activities.

Concentration

The action of focusing one’s attention or mental effort on a specific object, task, or activity without getting distracted.

Fast Food Chain

A business that serves quick service food across multiple outlets, focusing on convenience, speed, and consistency.