Petro Canada seeks to obtain a loan from a commercial bank in order to build an additional oil rig. Which type of financing is this?

Question

Quizplus · Accepted Answer

This is considered long-term debt financing that is unsecured because Petro Canada is borrowing money (debt financing) for a period that is typically longer than one year (long-term) to fund a significant capital expenditure like building an oil rig. The question does not specify that the loan is secured by collateral, hence it is assumed to be unsecured.

Petro Canada Seeks to Obtain a Loan from a Commercial