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CTP · Question #286

(Topic 3) A nationwide discount retailer is re-evaluating financing methods since the most-popular and most-expensive electronics "must-have" item for this year is set to ship from factories in…

The correct answer is B. Asset-based credit line. See the full explanation below for the reasoning.

Question

  • (Topic 3)

A nationwide discount retailer is re-evaluating financing methods since the most-popular and most-expensive electronics “must-have” item for this year is set to ship from factories in China. Which of the following credit facilities would be MOST effective for the retailer to use?

Options

  • AFactoring
  • BAsset-based credit line
  • CSecuritization
  • DCommercial paper issuance

How the community answered

(37 responses)
  • A
    5% (2)
  • B
    73% (27)
  • C
    5% (2)
  • D
    16% (6)

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