If a Firm Has Set Up a Revolving Credit Agreement

question 12

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:

Ethical Decisions

Choices made based on moral principles and values, considering what is right and wrong.

Conflicting Duties

Situations where an individual or organization faces two or more obligations that are difficult to fulfill simultaneously due to their opposing natures.

Ethical Dilemma

A situation where a person must choose between two morally correct actions that conflict.

Principle of Universality

A moral or ethical principle stating that rules or standards apply equally to everyone, regardless of circumstances or status.