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