Asked by Crissy Hogue on May 06, 2024
Verified
A floor plan can also be called a(n) :
A) Unsecured accounts receivable financing.
B) Banker's acceptance arrangement.
C) Secured inventory loan.
D) Revolving credit arrangement.
E) Non-committed line of credit.
Floor Plan
In finance, it refers to a type of short-term loan used by retailers to purchase high-cost inventory such as automobiles. In architecture, it's the scale diagram of the arrangement of rooms in a building.
Secured Inventory Loan
A loan that is backed by the borrower's inventory as collateral to reduce the lender's risk.
Accounts Receivable Financing
A type of financing arrangement where a company uses its outstanding invoices or receivables as collateral to secure immediate working capital from a lender.
- Examine the effects of payment policies on the cash flow cycle.
Verified Answer
Learning Objectives
- Examine the effects of payment policies on the cash flow cycle.
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