Credit Is Extended to a Company Up to One Year

question 47

Multiple Choice

Credit is extended to a company up to one year to purchase raw materials and cover a seasonal peak need for cash.What type of loan is this?

• A)Interim Construction Financing
• B)Working capital loan
• C)Security dealer financing
• D)Revolving credit financing
• E)None of the options is correct.

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Definitions:

Used Motor Vehicle

Used motor vehicle refers to a car, truck, or other motor-powered transportation device that has had one or more previous owners before the current possessor.

Fair Credit Reporting Act

A federal law in the United States designed to ensure accuracy, fairness, and privacy of information in the files of consumer reporting agencies.

Credit Reports

Documents compiled by credit bureaus detailing an individual's credit history, including loans, repayments, late payments, and bankruptcy records, used by lenders to assess creditworthiness.

Natural Person

A living human individual recognized by law as having rights and obligations, as opposed to a legal entity like a corporation.