The Primary Difference Between a Line of Credit and a Revolving

question 1

Multiple Choice

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

• A)length of the time period covered by the loan agreement.
• B)type of collateral used to secure the loan.
• 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)fact that the revolving credit arrangement requires a cleanup period but the line of credit does not.

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Definitions:

Corporate Social Responsibility

A business model that helps a company to be socially accountable—to itself, its stakeholders, and the public. By practicing corporate social responsibility, companies can be conscious of the kind of impact they are having on all aspects of society, including economic, social, and environmental.

Business Affairs

Involves the management of important aspects of a business such as planning, organizing, and controlling financial activities.

Levels of Responsibility

The hierarchical arrangement of duties and accountability in an organization or job, determining how decisions and tasks are delegated and managed.

Information Management

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