Which of the Following Statements Is Correct About a Corporation

question 6

Multiple Choice

Which of the following statements is correct about a corporation that borrows from its bank at "Prime plus one %?" The interest rate:

• A)is set at a level of the prime rate at initiation of the loan, plus one %.
• B)can fluctuate up to 1 % upwards over the life of the loan.
• C)can be changed upwards but not downwards over the life of the loan.
• D)can be changed upwards or downwards in accordance with prime rate changes over the life of the loan.

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Definitions:

Venturesome Personality

A personality trait characterized by a willingness to take risks and try new experiences.

Mechanical Engineer

A professional who designs, analyses, and manufactures mechanical systems, utilizing principles of physics and materials science.

Novel Design

A unique or original plan or pattern that has not been seen before in the creation of objects, systems, or activities.

Intrinsic Motivation

The desire to perform a behavior effectively for its own sake.