A Contract Negotiated Directly with a Bank in Which the Borrower

question 11

Multiple Choice

A contract negotiated directly with a bank in which the borrower agrees to make a series of interest and principal payments on specific dates to the bank is called

• A) Preference shares.
• B) commercial paper.
• C) convertible debt.
• D) a term loan.
• E) a bond issue.

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Definitions:

Vertical Integration

A strategy where a firm expands its operations into different stages of production or distribution within the same industry.

Strategic Alliance

A formal pact made between multiple parties to achieve common aims, notwithstanding their continuing independence as organizations.

Acquisition

The process of obtaining control of another company by purchasing it or merging with it.

Achieving Legitimacy

The process of gaining acceptance, credibility, and recognition within a particular context or among a specific audience.