You Are Managing a Company That Needs a Quick Injection

question 136

Multiple Choice

You are managing a company that needs a quick injection of cash.Two ways of raising secured funds quickly are

• A) bank loans and lines of credit.
• B) inventory loans and factoring accounts receivable.
• C) inventory loans and accessing accounts receivable.
• D) accounts receivable and trade credit.
• E) lines of credit and commercial paper.

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Definitions:

Adjudicated Insane

A legal determination made by a court that an individual lacks the mental capacity to manage their own affairs or to understand the nature of a criminal act.

Voidable

A term describing a legal contract or action that may be nullified or terminated at the discretion of one or both parties involved.

Covenant Not to Compete

An agreement where one party agrees not to enter into or start a similar profession or trade in competition against another party.

Ongoing Business

A company or commercial enterprise that continues to operate and engage in its activities, as opposed to one that is in the process of closing down or has ceased operations.