Florence wants to obtain a loan for a large color laser printer for her copy shop. Because the printer will last approximately eight years, the ideal loan would be a(n) _____ loan.
A) mortgage
B) trade credit
C) asset-based
D) term

Question

Quizplus · Accepted Answer

A term loan is a loan that is paid back over a set period of time, typically with a fixed interest rate. Given that Florence plans to use the printer for eight years, a term loan would be the most appropriate financing option. This would allow her to make regular payments over the lifespan of the printer, without having to worry about the loan coming due before the printer reaches the end of its useful life.

Florence Wants to Obtain a Loan for a Large Color