Match the term with its definition.
-A very large payment required about halfway through the term over which payments were calculated, repaying the loan balance in full
A)balloon payment
B)business angels
C)chattel mortgage
D)crowdfunding
E)factoring
F)initial public offering (IPO)
G)private placement
H)real estate mortgage

Question

Quizplus · Accepted Answer

A balloon payment is a large payment made at or near the end of a loan term, often used with loans that have short repayment terms or for loans that have lower monthly payments but require a larger final payment to fully repay the loan.

Answer: B
 Business angels are individuals who provide capital for start-up companies or small businesses, often in exchange for ownership equity or convertible debt.

Answer: C
 A chattel mortgage is a type of loan in which personal property, such as equipment or inventory, is used as collateral.

Answer: D
 Crowdfunding is the practice of raising funds for a project or venture by soliciting small contributions from a large number of people, typically via the internet.

Answer: F
 An initial public offering (IPO) is the first time a company sells stock to the public, allowing it to raise capital from public investors.

Answer: G
 A private placement is a type of fundraising where a company sells securities to a small group of investors, rather than to the public at large.

Answer: H
 A real estate mortgage is a type of loan in which real estate is used as collateral, and the borrower makes regular payments to repay the loan over a set period of time.

Match the Term with Its Definition