Asked by beyonce logan on Jun 08, 2024
Verified
Term loans are also a substitute for a series of short-term loans made with the hope of renewal by the borrower.
Term Loans
Fixed-amount loans from a financial institution to a borrower with a specified repayment schedule and a fixed or floating interest rate.
- Identify the conditions and consequences associated with term loans, including restrictive covenants.
Verified Answer
SB
Sharon BusseyJun 11, 2024
Final Answer :
True
Explanation :
Term loans, by definition, have longer repayment periods and may be a better option than constantly renewing short-term loans.
Learning Objectives
- Identify the conditions and consequences associated with term loans, including restrictive covenants.
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