Which one of the following statements is correct?
A) A farmer generally uses a type of financing that employs trust receipts to provide financing during the growing season.
B) A third-party inventory manager is generally involved with the lender and the borrower in a floor plan arrangement.
C) A drug store is more apt to have a financing arrangement involving trust receipts than one involving a blanket lien.
D) Floor plan arrangements are most applicable to large, easily identifiable types of inventory.
E) A direct loan from a bank is generally less expensive than a loan involving commercial paper.

Question

Quizplus · Accepted Answer

Floor plan arrangements are typically used for large, easily identifiable inventory items, such as automobiles or appliances, where the lender retains a security interest in the inventory.

Which One of the Following Statements Is Correct