Term loans can be used to bypass investment bankers and directly place debt with investors, providing more flexibility than publicly-traded debt. Additionally, they can be used to finance long-term or permanent working capital needs, such as expanding a business or purchasing new equipment. Therefore, all of the above options are correct.

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Term Loans

Question 98

Multiple Choice

Term loans:

A) are essentially private placements of debt,bypassing an investment banker as an intermediary.
B) are more flexible than publicly-traded debt
C) are often made to finance permanent working capital needs
D) all of the above
E) (a) and (b) only

Correct Answer: