Self liquidating financing is usually the best form of financing for
A) lawyers.
B) students.
C) doctors.
D) teachers.
E) farmers.

Question

Quizplus · Accepted Answer

Self-liquidating financing is best suited for farmers because it involves using the proceeds generated from the project financed to repay the loan. Farmers can utilize self-liquidating financing to fund crop production or the purchase of livestock or farm equipment. This financing option minimizes the risk of defaulting on the loan as the farmer generates revenue from the financed project to repay the loan.

Self Liquidating Financing Is Usually the Best Form of Financing