What Does It Mean for a New Business Loan to Be

question 117

Multiple Choice

What does it mean for a new business loan to be collateralized?

• A)Should the business fail, the loan is simply not repaid.
• B)The lender may sell a specific asset to recover the loan.
• C)The borrower does not pay interest on the loan.
• D)The borrower only pays interest when the entire loan is due.

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Definitions:

Stereotyping

Assigning generalized attributes to individuals based on their membership in a particular group, without acknowledging individual differences.

Projection

A psychological defense mechanism where individuals attribute their own unacceptable thoughts, feelings, or motives to someone else.

Expectations

Beliefs or anticipation about the way events, behaviors, or processes should unfold.

Self-Disclosure

The act of revealing personal information about oneself to others, which can build trust and foster closer relationships.