Term loans are BEST described by which of the following?

Question

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Term loans are typically long-term loans with a maturity of more than one year, and they are usually available from various financial institutions, including commercial banks, insurance companies, pension funds, commercial finance companies, and manufacturer's financing subsidiaries. Term loans may or may not be secured, and they typically have a repayment schedule that includes both principal and interest payments. Therefore, option B is the best choice as it describes the characteristics of term loans. Option A is incorrect as it describes short-term loans, not term loans. Option C is incorrect because not all term loans require collateral. Option D is incorrect since term loans usually have a repayment schedule that includes periodic payments, not just an annual payment.

Term Loans Are BEST Described by Which of the Following