In Asset-Based Borrowing,the ________ Is the Percentage of an Asset's

question 60

Multiple Choice

In asset-based borrowing,the ________ is the percentage of an asset's value that a lender will lend.

• A)prime rate
• B)margin rate
• C)advance rate
• D)discounted rate

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Definitions:

Tax Rate

The proportion of income that is taken as tax from a person or business.

Goodwill

An intangible asset that arises when a company acquires another business for more than the fair value of its net assets, representing future economic benefits.

Deferred Income Tax Liability

A financial accounting term representing taxes that are owed but not yet paid, resulting from temporary differences between the IRS and accounting methods.

Income Tax Rate

The fraction of one's earnings or a company's profits that must be paid in taxes.