An accurate statement about installment loans is that these Blank______.Multiple choice question.short-term funds are inadequate when seasonal financing is neededloans are usually for more than 1 yearshort-term funds are frequently used to cover working capital needs for a period of timeloans require a major collateral
Question
An accurate statement about installment loans is that these Blank______.Multiple choice question.short-term funds are inadequate when seasonal financing is neededloans are usually for more than 1 yearshort-term funds are frequently used to cover working capital needs for a period of timeloans require a major collateral
Solution
The accurate statement about installment loans is that these "loans are usually for more than 1 year".
Here's why:
-
Installment loans are a type of loan that is repaid over time with a set number of scheduled payments.
-
They are not short-term funds, and they are not specifically tied to seasonal financing needs.
-
While they can be used to cover working capital needs, this is not their primary or exclusive use.
-
They do not necessarily require major collateral. The need for collateral depends on the specific terms set by the lender.
So, the statement that best fits the characteristics of installment loans is that these loans are usually for more than 1 year.
Similar Questions
Installment loans can be obtained by a venture Blank______.Multiple choice question.that is funded solely by crowd fundingwith a strong creditworthy partner such as the governmentthat uses funds only from family and friendswith a track record of sales and profits
Long-term loans are usually available only to Blank______.Multiple choice question.a venture funded by family and friendsnew entrepreneursstrong, mature companiesa government-funded company
A hybrid of the installment loan is the Blank______, by which funds are advanced to the company for 30 to 90 days.Multiple choice question.straight commercial loanreal estate loaninventory loanaccounts receivable loan
An accurate statement about real estate loans is that it is Blank______.Multiple choice question.usually obtained to finance a company's land, plant, or another buildingdifferent from mortgage financingoften up to total amount of its valueused to cover only working capital needs for a limited period of time
Multiple Choice QuestionTwo common choices for raising funds to pay for long-term assets are equity financing and _____ financing.Multiple choice question.assetprincipalcapitaldebt
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.