If a Firm Has Set Up a Revolving Credit Agreement

question 97

True/False

If a firm has set up a revolving credit agreement with a bank, the risk to the firm of being unable to obtain funds when needed is lower than if it had an informal line of credit.

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Definitions:

Withdrawal Response

A behavior in which an organism avoids or retreats from an unpleasant or threatening stimulus.

Dishabituation

The phenomenon of dishabituation involves the re-emergence or strengthening of a response to a stimulus, after that response had diminished due to repeated exposure to the stimulus, reinvigorated by a change in context.

A State

The initial affective reaction to an environmental stimulus in opponent-process theory.

B State

The opposite affective response that the initial affective reaction, or A state, elicits in opponent-process theory.