If a corporation is looking for a loan that is too large for any one bank to lend to the corporation,then what type of loan will the firm most likely have to take out?

Question

Quizplus · Accepted Answer

A syndicated loan involves multiple banks working together to provide the requested loan amount to the borrower, thus spreading the risk among the banks. This type of loan is common for large corporations seeking substantial financing. A term loan is a standard loan with a fixed repayment schedule, while a project finance loan is specifically designed to finance a particular project, and may not apply to the corporation as a whole. Therefore, option B is the best choice for large corporate financing needs.

If a Corporation Is Looking for a Loan That Is