The Most Common Way to Finance a Temporary Cash Deficit

question 29

Multiple Choice

The most common way to finance a temporary cash deficit is with a:

• A) long-term secured bank loan.
• B) short-term secured bank loan.
• C) short-term issue of corporate bonds.
• D) long-term unsecured bank loan.
• E) short-term unsecured bank loan.

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Definitions:

Damages

Financial compensation awarded by a court to indemnify a harmed party for loss or injury resulting from a breach of contract or wrongdoing.

Quantum Meruit

(“as much as is deserved”) a reasonable price paid for requested services.

Equitable Remedies

Judicial remedies requiring a party to act or refrain from acting in a certain way, often used when monetary compensation is insufficient.

Specific Performance

A legal remedy where a court orders a party to fulfill their obligations under a contract, rather than just paying damages.