A ________ is provided to a business by a financial institution and has a maturity of more than one year.
A) debenture
B) mortgage bond
C) term loan
D) zero-coupon bond

Question

Quizplus · Accepted Answer

A term loan is a type of loan provided by a financial institution with a maturity of more than one year. It is often used to finance long-term investments such as the purchase of fixed assets or to support the growth of a business.

Option A is incorrect because a debenture can have a maturity of less than one year, and it is not always provided by a financial institution. 
Option B is incorrect because a mortgage bond is a type of bond secured against a mortgage on a property, and it may have a maturity of less than one year. 
Option D is incorrect because a zero-coupon bond is a type of bond that is sold at a discount to its face value and does not make periodic interest payments. It may have a maturity of less than one year.

A ________ Is Provided to a Business by a Financial