The extent to which inventory financing may be used depends on the
A)marketability of pledged goods.
B)price stability of goods.
C)perishability of goods.
D)All of these options

Question

Quizplus · Accepted Answer

The marketability of pledged goods is important as it determines the ease and speed at which the inventory can be sold in case the borrower defaults. The price stability of goods is also important as drastic changes in prices can affect the borrower's ability to repay the loan. The perishability of goods is important for certain industries, but may not be a factor for all inventory financing. Therefore, all of these options should be considered when assessing the extent to which inventory financing may be used.

The Extent to Which Inventory Financing May Be Used Depends