It is not wise to use a line of credit to finance the acquisition of plant.

Name: It is not wise to use a line of credit to finance the acquisition of plant.
Brand: Quizplus
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Question

It is not wise to use a line of credit to finance the acquisition of plant.​

Quizplus · Accepted Answer

Using a line of credit to finance the acquisition of plant could result in high interest rates and increased debt burden, potentially leading to difficulties in repaying the loan. It is advisable to seek alternative forms of financing such as loans, leasing, or equity investment.

It Is Not Wise to Use a Line of Credit