1. Working capital loans tend to be short-term in nature.
A) True
B) False
2. Commercial paper is a short-term financing option.
A) True
B) False
3. Receivables and inventory can be used as collateral for bank loans.
A) True
B) False
4. Spontaneous sources of funds tend to grow as a business expands.
A) True
B) False
5. Trust receipts give lenders direct control over inventory.
A) True
B) False