In General

question 115

Multiple Choice

In general,

• A)a revolving credit agreement is equally as expensive but less risky to the firm than a line of credit.
• B)a revolving credit agreement is equally as expensive and more risky to the firm than a line of credit.
• C)a revolving credit agreement is less expensive and less risky to the firm than a line of credit.
• D)a revolving credit agreement is less expensive but more risky to the firm than a line of credit.
• E)none of the above

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Definitions:

Permissible

That which is allowed or authorized by law, ethics, or some other governing body.

Hedonistic Utilitarian

A branch of utilitarian ethics focused on maximizing pleasure and minimizing pain as the criteria for determining the moral rightness of actions.

Satisfaction of Preferences

The achievement of a state where one's desires or preferences are fulfilled or met.

Paternalists

Individuals or entities that exercise authority by making decisions for others, purportedly in their best interests, often without their consent or against their wishes.