Business, 26.02.2020 02:25 lolxdtig

Kenneth wants to start a new business. To get start-up capital, he takes a short-term loan from a bank. The bank agrees to provide him the agreed-upon funds as per a legally binding commitment. However, the bank requires Kenneth to pay interest on any fund he borrows and a commitment fee based on the unused amount of funds. Which of the following short-term financing sources does Kenneth utilize to fund his business in the given scenario?

A. Factoring
B. Commercial paper
C. Trade credit
D. Revolving credit agreement

Answers: 1

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Kenneth wants to start a new business. To get start-up capital, he takes a short-term loan from a ba...

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