A bank loan that imposes restrictions or covenants on the business decisions an entrepreneur makes concerning the company's operations is called a ________.

Question

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The type of loan that imposes restrictions or covenants on a business's decisions concerning its operations is a term loan. A home equity loan is a type of loan taken out against the equity in one's home, a floor plan is a type of financing used by car dealerships, and a line of credit is a type of revolving credit that can be drawn upon as needed.

A Bank Loan That Imposes Restrictions or Covenants on the Business