Asset-Based Borrowing Enables a Small Company to Borrow Money by Pledging

question 116

True/False

Asset-based borrowing enables a small company to borrow money by pledging otherwise idle assets such as accounts receivable and inventory.

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Definitions:

On-us Item

A check or draft that is drawn on the same bank or one of its branches where it is being presented for payment.

Negotiable Instrument

A formal document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payee's name either mentioned or left blank.

Uniform Commercial Code

A complete collection of regulations that oversee every business transaction within the United States.

Electronic Banking

The conduct of banking activities through electronic means, including online banking, ATMs, and electronic payments.