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.

---

Definitions:

Dispositional Attributions

The tendency to attribute someone's behavior to their personality, traits, or disposition rather than situational factors.

Attributional Style

An individual's characteristic way of explaining the causes of events, which can influence their motivation, emotions, and behaviors in various contexts.

Attribution Theory

A psychological framework for understanding how individuals infer the causes of others' behavior, whether attributing it to internal dispositions or to external situations.

Fundamental Attribution Error

The tendency to overemphasize personality-based explanations for behaviors observed in others while underemphasizing the role of situational factors.