Purchase Solution

Bank lines of credit

Not what you're looking for?

Ask Custom Question

Bank lines of credit must be judiciously requested because the lines often:
A) accrue interest regardless of whether funds are borrowed.
B) require payment of a commitment fee to establish.
C) appear as a liability on the firm's balance sheet.
D) have a negative impact on the firm's credit history.

Purchase this Solution
Solution Summary

The solution explains the impact of bank lines of credit

Solution Preview

A) accrue interest regardless of whether funds are borrowed.

This is not correct. The interest usually accrues only for the funds borrowed.

B) ...

Purchase this Solution
Free BrainMass Quizzes
Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

View More Free Quizzes
Related BrainMass Solutions

  • Banks: Solicitations for Credit Cards

    417465 Are banks acting in a responsible fashion with their solicitations of consumers for credit cards and increases in credit card lines? What responsibility do consumers have with regard to credit card debt?

  • Network & Computer Security V

    - Why do you think the bank uses a fractional T1 line to its Da Kine Island branch instead of a full T1 line? Instead of a Frame Relay connection? - Why do you think the bank uses T3 lines to link its major facilities instead of using ATM?

  • Cross border banking: Select a bank

    line of credit, however, the available credit limit is reduced each time a repayment is made www.bankofamerica.com Your business needs lines of borrowing only at certain times and on the basis of security, which suits it, foreign transactions.

  • identifying changes in net cash flows

    to automated production e) using long-term bank credit to reduce payables The answer is E.

  • Alternatives to finance overseas investment

    Lines of Credit Lines of credit are normally issued by banks and other suppliers. A bank line of credit allows the firm easy and quick access to capital. This form of external funding avoids the red tape normally associated with long term loans.

  • How are Uses and Sources of Funds Calculated?

    Typical sources include credit lines, bank cards and company investments. The uses of cash also comes through from different worksheets, which mainly consist of a cost worksheet or ledger.

  • Analysis of Credit Bureaus & Top-Down/Bottom Up Budgeting

    These credit reports then tell the lending bank whether or not a borrower has paid back their prior loans.

  • Credit Card Debt

    Between 1996 and 2007, credit limits on consumer credit cards increased by nearly 100 percent to a total of $2.55 trillion dollars of available credit lines for consumers (revolving and non-revolving).

  • Credit Agricole: Case Study

    Also, the acquision of Italian bank Intesa gives it 172 additional branches in Italy, I expect competitive reactions from other banks. Credit Agricole has now become the seventh largest bank in Italy with 900 branches.

View More Related Solutions