Question

Which of the following features best describes a Term

Q: Answer-Which of the following features best describes a Term Loan as compared to a Cash Credit facility?

Term loans are long-term financing options typically provided for purchasing fixed assets or financing long-term capital needs, repayable in installments. In contrast, Cash Credit is a short-term facility used to finance working capital and is typically repayable on demand or renewed annually.

Loan as compared to a Cash Credit facility?

A Term loans are primarily used for short-term needs, while Cash Credit is used for long-term financing

B Term loans are repayable in installments over a longer period (5-10 years), while Cash Credit is repayable on demand.

C Term loans are used exclusively for working capital, while Cash Credit is used for capital asset purchases.

D Term loans are usually not secured by collateral, whereas Cash Credit typically requires collateral.

E Term loans are provided for working capital and short-term needs, while Cash Credit is typically used for capital expenditures.

Practice Next

More Financial Management Questions

What is meant by 'cardinality' in data modeling?
Which of the following best defines the concept of the "Internet of Things" (IoT)?
In a star schema, what is the main advantage of using surrogate keys in fact tables?
In the context of a relational database, which of the following is NOT a characteristic of a candidate key ?
A star schema in a data warehouse consists of:
Which SQL query will correctly calculate the average salary of employees in each department and group them by department in a table named 'employees'?
In a data cube, what does "slice" operation do?
Which schema in data warehousing uses a central fact table connected to dimension tables?
Which of the following is a real-time data warehouse application?
A Fact Constellation Schema is also called:

Which of the following features best describes a Term

Solution