A Line of Credit Would Be Considered

question 45

Multiple Choice

A line of credit would be considered:

• A) an agreement to borrow up to a specific total amount on demand from a bank.
• B) a short-term unsecured loan with minimum interest expense.
• C) a secured loan to be amortized over three to five years.
• D) a long-term, permanent source of funding.

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Definitions:

Tender Of Payment

An offer to pay a debt or obligation in a legally recognized form.

Christmas Trees

Cultivated or wild trees, typically evergreen, decorated during the Christmas season as part of festive celebrations.

Ordinary Course

The normal and expected manner in which a business operates, including its regular transactions and practices.

Revocation Of Acceptance

A legal action where a buyer rejects goods after initially accepting them, usually due to nonconformity with the contract.