Timini Inc., a beverage company, wants to produce a new health drink. It borrows money from Maverk Bank to finance the procedure. The bank mandates Timini Inc. to return the amount with interest in a regular schedule of fixed payments. Which of the following sources of long-term funds is being used by Timini Inc. in the given scenario?
A) Commercial paper
B) A term loan
C) A line of credit
D) Trade credit

Question

Quizplus · Accepted Answer

A term loan is a source of long-term funds where a company borrows a specific amount of money from a bank and agrees to repay it with interest in regular fixed payments over a set period.