Operating-Change Restrictions Gives the Bank a Right to Revoke the Line

question 101

True/False

Operating-change restrictions gives the bank a right to revoke the line of credit if any major changes occur in a firm's financial condition or operations.

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Definitions:

Total Variable Costs

The expenses that change in proportion to the activity of a business.

Drones

Unmanned aerial vehicles used for a variety of purposes including surveillance, delivery, agriculture, and photography.

Diminishing Returns

A principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, will begin to decrease.

Average Total Cost

The total cost of production divided by the quantity of output produced.