Question

Andrew, a pharmacist, realized that he should stock extra supplies of a particular medicine to respond to an outbreak of a particular infection in the city. Lacking sufficient capital to purchase the extra inventory, he turned to his bank and asked to borrow a predetermined sum of money. Which of the following sources of funding does this scenario best illustrate? A. Trade creditB. Initial public offeringC. Venture capitalD. Equity financingE. Line of credit

Answer 1

E. Line of credit

Step-by-step explanation:

From the following sources of funding, the mentioned scenario best explained by "Line of credit".

Because in line of credit is also a type of facility in which a sum of amount is been credited to the government or any person that carries the bank account of that particular bank, itself by the bank.

And also in this a person can borrow a sum of money from the bank as Andrew asked to his bank.