All other things equal,the existence of a line of credit enhances the ability of a company to meet its short-term obligations.
BT: Comprehension

Question

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A line of credit provides a source of financing that a company can draw upon to meet its short-term obligations, which can improve its ability to handle unexpected expenses or fluctuations in cash flow. Therefore, all other things being equal, the existence of a line of credit enhances a company's ability to meet its short-term obligations.

All Other Things Equal,the Existence of a Line of Credit