A line of credit to a corporation is like _____ to an individual.
A) a term loan
B) a bond
C) a credit card
D) a debit card

Question

Quizplus · Accepted Answer

A line of credit to a corporation is like a credit card to an individual. Just like a credit card, a line of credit allows a corporation to borrow money up to a certain limit and pay interest only on the amount borrowed. This is different from a term loan, which is a lump sum borrowed and paid off over a fixed period of time, and a bond, which is a debt security issued by a corporation or government. A debit card is not a form of credit and does not allow an individual to borrow money, so it does not have an equivalent comparison for a corporation.

A Line of Credit to a Corporation Is Like _____