A firm experiencing short-term cash flow problems can most easily deal with the problem by ________________.
A) Drawing on their good credit rating to apply for a secured loan.
B) Applying for a non-committed operating loan.
C) Issuing new long-term bonds.
D) Drawing on their good credit rating to apply for a short-term unsecured loan.
E) Drawing on an existing, unused committed operating loan.

Question

Quizplus · Accepted Answer

Drawing on an existing, unused committed operating loan is the easiest and quickest way to address short-term cash flow problems, as it involves utilizing already available credit.

A Firm Experiencing Short-Term Cash Flow Problems Can Most Easily