The Fruitiest Candy Company finds that from time to time it needs short-term funds to cover its operating expenses.It wants to establish a prearranged loan with a bank but has not found a bank that will guarantee such a loan.Perplexed by this,the management team asks you how they should proceed.You recommend that they
A) file a suit against the banks.
B) find a bank out of state or out of the country that will guarantee that the money will be available when needed.
C) simply file a claim with the FDIC.
D) retaliate by withdrawing all cash from the local bank and canceling all certificates of deposit.
E) set up a line of credit with a bank that offers a revolving credit agreement.

Question

Quizplus · Accepted Answer

The best option for the Fruitiest Candy Company is to set up a line of credit with a bank that offers a revolving credit agreement. This will provide them with the flexibility to access the funds they need when they need them, without having to go through the process of securing a prearranged loan each time. It is also a commonly used financial tool for operating expenses, and many banks offer this service. Choosing this option will allow for smooth business operations and financial stability.

The Fruitiest Candy Company Finds That from Time to Time