The extent to which inventory financing may be used depends on
A) marketability of pledged goods.
B) price stability of goods.
C) how perishable the goods are.
D) all of the other answers are correct

Question

Quizplus · Accepted Answer

All of the given options affect the extent to which inventory financing may be used. The marketability of pledged goods ensures that the lender can sell the goods easily in case of default. The price stability of goods ensures that the lender can recover their loan amount by selling the goods at a reasonable price. The perishability of goods affects the time frame within which the goods must be sold to recover the loan amount. Therefore, all the options are correct.

The Extent to Which Inventory Financing May Be Used Depends