David has a company that decorates houses for the holidays. He has secured a $25,000 line of credit from his bank. David is most likely to use this line of credit for which of the following?

Question

Quizplus · Accepted Answer

David's business is seasonal and involves decorating houses during the holidays. Therefore, the most likely use for the line of credit would be to pay for labor to install the decorations in November, which is the busiest month for his business. Investing in a warehouse, truck, or full-time office person may be unnecessary expenses that do not directly contribute to the success of the business during the holiday season.

David Has a Company That Decorates Houses for the Holidays