The Decision of Which Lender to Use and Which Type

question 8

Multiple Choice

The decision of which lender to use and which type of long-term loan is best for a project is part of:

• A)working capital management.
• B)the net working capital decision.
• C)capital budgeting.
• D)a controller's duties.
• E)the capital structure decision.

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Definitions:

Proxy

An authority to act on behalf of another person in voting or making decisions.

Directors

Individuals appointed or elected to the board of a corporation who are responsible for overseeing and guiding the company's policies and decisions.

Directors

Individuals elected by shareholders to manage the corporation's affairs and make decision on major company issues.

Voting Trust

A legal arrangement where shareholders' voting rights are transferred to a trustee, typically to consolidate control over a company for a specific period.