The Reasons Why a Company May Choose to Pledge Accounts

question 80

Multiple Choice

The reasons why a company may choose to pledge accounts receivable are all of the following except:

• A) lower interest rate
• B) borrowing capacity fluctuates with A/R
• C) provides another source of financing for companies with lower credit ratings
• D) all of these are reasons for pledging accounts receivable

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Definitions:

Tranquilizers

Medications used to reduce tension or anxiety, and sometimes to induce sedation.

Pharmacokinetic Activity

The process by which a drug is absorbed, distributed, metabolized, and eliminated by the body.

Psychosocial Needs

The emotional, social, and psychological requirements necessary for a healthy life and mental well-being.

Body Image

Peoples' subjective concept of their physical appearance.