David has a company decorating houses for the holidays.He has secured a R25 000 line of credit from his bank.For which purpose is David more likely to use this credit line?

Question

Quizplus · Accepted Answer

Labour to install the decorations in November is the most likely purpose for using the credit line as it is a necessary expense directly related to the business's primary activity during the holiday season. The other options, such as a warehouse, a truck, or a full-time office person, are not directly related to the core business activity and may not be necessary for the success of the business during the holiday season.

David Has a Company Decorating Houses for the Holidays