All Star Sporting Goods Seeks Short-Term Financing to Complete Much-Needed

Multiple Choice

All Star Sporting Goods seeks short-term financing to complete much-needed repairs on its retail store. All Star decides to offer up its inventory as collateral in return for a $20,000 from the bank. Which of the following does this exemplify?

A) trade credit
B) a secured loan
C) a promissory note
D) line of credit