Q1 Which of the following is a disadvantage of long-term loans?

A. They cannot provide substantial sums of money to businesses.

B. They require diluting ownership in organizations.

C. They are available to firms with a weak credit rating.

D. Such loans can restrict the way an organization uses its assets.

E. Not all companies can qualify for loans and acceptable terms.

Q2 Rex Associates has a poor credit rating and is finding it difficult to obtain loans. In order to fund a new project, the company decides to let out one of its buildings to a bank. The company obtains funds in return from the bank. This is an example of ________.

Question 15 options:

	A. unsecured lending
	B. factoring
	C. leasing
	D. long-term lending
	E. short-term lending