Question

From the descriptions below please identify what type of business loan is involved.
a. A temporary credit supports construction of homes, apartments, office buildings, and other permanent structures.
b. A loan is made to an automobile dealer to support the shipment of new cars.
c. Credit extended on the basis of a business’s accounts receivable.
d. The term of an inventory loan is being set to match the length of time needed to generate cash to repay the loan.
e. Credit extended up to one year to purchase raw materials and cover a seasonal need for cash.
f. A securities dealer requires credit to add new government bonds to his securities portfolio.
g. Credit granted for more than a year to support purchases of plant and equipment.
h. A group of investors wishes to take over a firm using mainly debt financing.
i. A business firm receives a three-year line of credit against which it can borrow, repay, and borrow again if necessary during the loan’s term.
j. Credit extended to support the construction of a toll road.



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  • CreatedOctober 31, 2014
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