A Loan from a Stockbroker,based on the Stocks and Bonds

question 72

Multiple Choice

A loan from a stockbroker,based on the stocks and bonds in the customer's portfolio:

• A)tends to be at a higher rate than a bank but easier to obtain.
• B)can be "called" for payment in a matter of hours or days.
• C)is for a maximum of $50,000.
• D)has a fixed repayment schedule and must be paid within 90 days.

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Definitions:

Owner's Capital

The amount of equity a business owner has invested in the firm plus any profits retained in the business.

Revenues

The income generated from normal business operations and other activities.

Business Documents

Written records that provide evidence of business transactions, agreements, and other business activities.

Ledger Accounts

Records within a ledger that show all the financial transactions of a specific account, summarized.