Aardvark Needs Some Short-Term Financing to Meet a Cash-Flow Gap

Aardvark needs some short-term financing to meet a cash-flow gap while it makes immediate capital expenditures. Which of the following, if True, would strengthen the case for the company's using a credit card for this purpose?

A) Family members of the company owners have a lot of liquid assets.
B) The company is not sure when it will be able to repay the money.
C) The company expects to be able to repay the money next month.
D) The company needs to obtain a line of credit without interest.
E) The company can provide collateral for a secured loan.

Correct Answer:

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