A line of credit and a revolving credit agreement are similar except that a line of credit creates a legal obligation for the bank.
Correct Answer:
Verified
Q27: A firm is said to be extending
Q28: Accruals are "free" financing in the sense
Q29: Trade credit can be separated into two
Q30: The fact that no explicit interest cost
Q31: When deciding whether or not to take
Q33: If a firm is offered credit terms
Q34: As a rule, managers should try to
Q35: One of the advantages of short-term debt
Q36: Trade credit is an inexpensive source of
Q37: One of the disadvantages of not taking
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