Carol underestimated how many roses she would sell on Mother's Day.She was able to find a local grower willing to open his greenhouse and she arranged with the bank to increase her credit limit to purchase more roses.What is this an example of?
A) spontaneous cost of goods sold
B) spontaneous cost allocation
C) spontaneous credit approval
D) spontaneous debt financing

Question

Quizplus · Accepted Answer

This is an example of spontaneous debt financing, as Carol arranged with the bank to increase her credit limit in order to purchase more roses to meet the unexpected demand on Mother's Day.

Carol Underestimated How Many Roses She Would Sell on Mother's