Which of the Following Is a Disadvantage of Long-Term Loans

question 24

Multiple Choice

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.

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Definitions:

Science and Medicine

Fields dedicated to the study and application of knowledge to discover natural laws and improve human health and well-being.

Piaget's Stages

A theory developed by psychologist Jean Piaget, describing four stages of cognitive development in children, including sensorimotor, preoperational, concrete operational, and formal operational stages.

Understanding Conservation

The cognitive ability to recognize that the properties of objects (such as number, volume, mass) can remain the same despite changes in the forms or arrangements of those objects.

Prefrontal Cortex

A region of the brain associated with decision making, social behavior, and personality expression.