Florence wants to obtain a loan for a large color laser printer for her copy shop.Since the printer will last approximately 8 years,the ideal loan would be a _____ loan.
A)mortgage
B)trade credit
C)asset-based
D)term

Question

Quizplus · Accepted Answer

A term loan is a loan that is repaid in equal installments over a set period of time. This would be the ideal loan for Florence since she wants to finance the printer for a specific period of time (8 years) and repay the loan in equal installments. A mortgage loan is typically used to purchase real estate, while trade credit is a type of financing that a business extends to another business for purchases. An asset-based loan is a type of loan that is secured by collateral, which Florence may not have for the printer.

Florence Wants to Obtain a Loan for a Large Color