ProStar Desks needs to double the size of its fleet of delivery vehicles. Its bank provides the owners with a $500,000 credit to use for their vehicle order. This credit isbest described as
A) a line of credit.
B) a promissory note.
C) angel investing.
D) a transaction loan.
E) commercial paper.

Question

Quizplus · Accepted Answer

A transaction loan is a short-term loan used to finance a specific transaction, such as the purchase of a fleet of vehicles.

ProStar Desks Needs to Double the Size of Its Fleet