Rudolf and Martin, a finance management company, offers funds to corporations that require a permanent source of funding. However, it required the company to make fixed payments on a regular schedule to ensure that the amount borrowed and interest are repaid. Which of the following sources of long-term funds is being offered by Rudolf and Martin in the given scenario?
A) Line of credit
B) Commercial paper
C) Term loans
D) Trade credit

Question

Quizplus · Accepted Answer

Term loans are long-term funding sources that require the borrower to make fixed payments on a regular schedule, including both principal and interest, similar to the scenario described.

Rudolf and Martin, a Finance Management Company, Offers Funds to Corporations