An informal agreement that allows a company to borrow up to a prearranged limit without having to follow formal loan procedures and prepare paperwork is known as:

An informal agreement that allows a company to borrow up to a prearranged limit without having to follow formal loan procedures and prepare paperwork is known as:


A) A line of credit.

B) Commercial Paper.

C) A debt covenant.

D) Working capital.


Answer: A


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