Which of the following borrowers benefits the most from a revolving line of credit?
A)a local grocery retailer located in downtown Toronto
B)an owner of a gift shop with the majority of its annual sales during Christmas season
C)an ice cream seller whose business is located in a Niagara Falls resort
D)a manufacturer of hand tools whose sales are generally evenly distributed throughout the year

Question

Quizplus · Accepted Answer

The owner of a gift shop with the majority of its annual sales during Christmas season benefits the most from a revolving line of credit as it provides them with the flexibility to borrow and repay funds as needed to support their seasonal cash flow needs. They can draw on the line of credit during the busy Christmas season and repay it during the slower months.

Which of the Following Borrowers Benefits the Most from a Revolving