15 A promissory note is the document signed when a bank loan is executed, and it specifies financial aspects of the loan. The bank can hold the note in its loan portfolio, sell it to a permanent investor like a life insurance company or pension fund, or bundle it with other notes payable and use it as collateral for an asset-backed security that trades on the open market. wered ut of 1.00 9 Select one: O a. True b. False N 16 Which of the following is an advantage of trade credit? wered ut of 1.00 9 Select one: a. all of the above b. no formal agreements are generally involved in extending credit. c. the amount of credit extended expands and contracts with the needs of the firm. a d. trade credit is conveniently obtained as a normal part of operations. N 17 The type of business that a company is in affects its managements of inventory. wered at of 1.00 9 Select one: a. False b. True N18 A firm is offered trade credit terms of 3/15 net 45. The firm does not take the discount, and pays after 87 days. What is the annual cost of not taking the discount? swered ut of 1.00 Select one a a. 21.419 b. 37.11% 23 4900