Which of the Following Describes the Process by Which a Third

question 4

Multiple Choice

Which of the following describes the process by which a third party determines a binding settlement to a dispute between two parties?

• A)Mediation
• B)Arbitration
• C)Consultation
• D)Discretion
• E)Ingratiation

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Definitions:

Interest Rates

The cost of borrowing money or the reward for saving, usually expressed as a percentage of the principal amount annually.

Balloon Note

A type of loan that has a large or "balloon" payment due upon maturity, typically after a series of lower regular payments.

Maturity

The final payment date of a loan or financial instrument at which point the principal (and all remaining interest) is due to be paid.

Covenants

Agreements or promises in a formal loan or bond agreement that cover certain conditions, actions, or restrictions taken by the borrower.