Question

which of the types of companies below is more likely to use secured short - term financing?
a company that has no collateral to provide to obtain a loan
a company that provides services rather than products
a company with a poor credit rating
a company with an excellent credit history

Explanation:

Secured short - term financing requires collateral. Companies with poor credit ratings often have difficulty obtaining unsecured financing, so they are more likely to use secured short - term financing by offering collateral. A company with no collateral can't use secured financing. Whether a company provides services or products isn't directly related to the use of secured short - term financing. A company with an excellent credit history can usually access unsecured financing more easily.

Answer:

C. A company with a poor credit rating