Which of the following is(are)true?
A)Secured lenders have lower priority claims than unsecured creditors.
B)Trade credit, commercial paper, and unsecured loans are all methods of financing which require no specific pledging of assets as collateral.
C)Short-term bank debt is used more frequently than trade credit.
D)a and b

Question

Quizplus · Accepted Answer

Trade credit, commercial paper, and unsecured loans are all financing methods that do not require specific pledging of assets as collateral. Secured lenders have higher priority claims than unsecured creditors. Short-term bank debt and trade credit are both commonly used methods of financing, but there is no clear data to support one being used more frequently than the other.

Which of the Following Is(are)true