Which of the Following Statements Holds True for Fronting Loan

question 38

Multiple Choice

Which of the following statements holds true for fronting loan?

• A)It refers to the process of financing long-term outlays for major projects such as plant expansion, entry into new markets, or research and development.
• B)It refers to raising capital by borrowing the money and agreeing to repay the entire amount plus agreed-upon interest at a specific date in the future.
• C)It refers to a process which in which the parent company directly gives a loan to its subsidiary.
• D)It refers to the funding of the subsidiary by the parent company through a financial intermediary such as a bank.
• E)It refers to the loan on which the bank charges companies a slightly lower rate of interest for expanding operations in developing countries.

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Definitions:

Behavior Therapy

A type of psychotherapy that focuses on changing undesirable behaviors through conditioning and reinforcement techniques.

Tranquilizer

A drug used to reduce tension or anxiety; an antipsychotic medication.

Mild Anxiety

A lower intensity of anxiety that may be transient and not significantly impair one's ability to function in daily life.

Therapeutic Influence

The impact of treatments or interventions designed to alleviate symptoms or improve the well-being of individuals.