Line of credit is best defined by which of the following statements?

A line of credit is the part of a firm's net income it reinvests.

A line of credit is the use of debt in a firm's capital structure.

A line of credit is a financial arrangement between a firm and a bank in which the bank preapproves credit up to a specified

limit$.$

A line of credit is a restriction lenders impose on borrowers as a condition of providing long$-$term debt financing.