A Typical Five-Year Revolving Line of Credit Is Characterized By

question 47

Multiple Choice

A typical five-year revolving line of credit is characterized by:

• A)a fixed interest rate for the five years.
• B)a floating interest rate, renewed periodically during the five-year term.
• C)an interest rate that is lower than the prime rate because these lines of credit are only offered to the most creditworthy firms.
• D)b and c

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Definitions:

Progressive Discipline

A method of employee discipline that applies increasingly severe penalties for repeated offenses.

Respondeat Superior

The legal doctrine that imposes liability on employers and makes them pay for torts committed by their employees within the scope of the employer’s business. Literally translated, it means “Let the master respond.”

Non-delegable Duty

A legal obligation that cannot be transferred to another party and must be performed by the individual or entity to whom it is assigned.

Tort

A private wrong that injures another person’s physical well-being, property, or reputation.