Term loans can come from various sources including commercial banks and insurance companies, have flexible repayment schedules, are used for capital expenditures with maturities over a year, and can be either secured or unsecured, making all the provided statements correct.

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Term Loans

Question 69

Multiple Choice

Term loans:

A) are available from commercial banks, insurance companies, pension funds, commercial finance companies, and manufacturer's financing subsidiaries
B) may be repaid on a quarterly, semiannual, or annual schedule
C) are capital expenditure loans with a maturity of more than one year
D) can be secured or unsecured
E) are accurately described by all of the above

Correct Answer: