Fred,the president of Fred,Inc.,has executed a ____.The terms of the Fred,Inc.promissory note require the corporation to repay the loan in monthly installments.
A) term-loan agreement
B) trade loan agreement
C) business financing agreement
D) equity note

Question

Quizplus · Accepted Answer

A term-loan agreement is a type of loan in which the borrower receives funds in a lump sum and repays the loan over a set period of time with regular payments, typically with interest. In this case, Fred, the president of Fred, Inc., has executed a promissory note, which is a type of term-loan agreement. The terms of the promissory note require the corporation to make monthly installment payments to repay the loan. Choice B) trade loan agreement, and C) business financing agreement, are not applicable as they do not involve the repayment of a loan in installments. Choice D) equity note is not applicable as it does not involve the repayment of a loan.

Fred,the President of Fred,Inc