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Joan Wants to Buy a New Loom for Her Weaving

Question 47

Multiple Choice

Joan wants to buy a new loom for her weaving business.She applies to a bank for a loan of $50,000.It is a long-term loan that she intends to pay in five years time at a fixed interest rate.This is an example of:


A) debt financing.
B) capital budgeting.
C) equity financing.
D) trade credit.
E) multilateral netting.

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