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Characteristics is least applicable to term loans

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Reference no: EM131878220

1. The basic assumption of the ABC approach to inventory management is that:

most items are ordered, stocked, and sold in a relatively short period of time.

a small portion of inventory represents a large portion of inventory costs.

firms should Always Be Consistent in the amount of inventory ordered.

inventory should be divided dependent on the type of cash or credit sale anticipated.

firms should receive A customer’s order Before incurring inventory Costs.

2. Which one of these characteristics is least applicable to term loans?

avoidance of SEC registration

direct business loan arrangement

more restrictive covenants than publicly issued debt

lower distribution costs than a public issue

maturity in excess of five years

Reference no: EM131878220

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