Figure 26-1
-What does the accompanying figure show?
Definitions:
Term Loans
Loans from financial institutions that are repaid over a set period of time with scheduled payments.
Personal Guarantees
A commitment by an individual to repay a debt if the original borrower defaults, often required in business loans.
Joint and Severable
A legal term indicating that all parties in a contract are equally responsible for fulfilling the terms of the agreement, and each can be held fully accountable.
Interest Rates
The cost of borrowing money or the return on investment, expressed as a percentage of the principal, that lenders charge or pay over a specific period.
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