Identify a true statement about character loans.Multiple choice question.These loans are usually easily obtained to finance a company's land, plant, or another building, often up to 75 percent of its value.These loans frequently must have the assets of the entrepreneur or other individual pledged as collateral or the loan cosigned by another individual.These self-liquidating loans are often used for seasonal financing and for building up inventories.These loans are usually available only to strong, mature companies.

Identify a true statement about self-liquidating loans.Multiple choice question.They require the involvement of strong creditworthy customers such as the government.They develop a factoring arrangement whereby the factor actually buys the accounts receivable.They are often used for seasonal financing and for building up inventories.They are often used for mortgage financing.

Identify a true statement about debt financing.Multiple choice question.It is also termed asset-based financing.It never requires an additional fee.It is also called reward-based funding.It does not require an asset as a collateral.

Which of the following statements is FALSE?A.Venture capital firms do not make outright loans.B.Securities firms specialize in the trading and brokerage of existing securities.C.The value of assets is the traditional measure of size in the securities brokerage and investment banking industry. D.Investment banks specialize in the raising of debt and equity securities for corporations and governments.E.Securities firms and investment banks perform only the brokerage function.

What is a primary characteristic of debt financing?Answer areaa) Transfer of ownership rightsd) Sharing of profits with investorsb) No obligation to repay principalc) Fixed repayment schedule

Property that is pledged to the lender in the event that a borrower cannot make his or herdebt payment is calledA) collateral.B) points.C) interest.D) good faith money.