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Asset-Based Borrowing Permits Small Businesses

Question 19

Multiple Choice

Asset-based borrowing permits small businesses:


A) to borrow up to 100% of the value of their inventory or their accounts receivable for the money they need for long-term goals.
B) to use normally unproductive assets-accounts receivable and inventory.
C) to obtain loans more easily but with less borrowing power than if they used an unsecured line of credit.
D) access to a source of funds ideally suited for long-term financing needs.

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