Which of the Following Is True of Fixed Payment Loans

question 49

Multiple Choice

Which of the following is true of fixed payment loans?

• A) The borrower repays both the principal and interest at the maturity date.
• B) Installment loans and mortgages are frequently of the fixed payment type.
• C) The borrower pays interest periodically and the principal at the maturity date.
• D) Commercial loans to businesses are often of this type.

Comprehend the significance of regression analysis in trend measurement and forecasting.

Understand the concepts and necessity of statistical process control.

Identify and explain the purposes of different types of control charts.

Recognize the conditions necessary for a process to be considered capable.

---

Definitions:

Assets

Resources owned by a company that provide future economic benefits.

Liabilities

Financial obligations or debts that an entity owes to others, which must be settled over time through the transfer of economic benefits.

Surrenders Control

The action of relinquishing authority, power, or ownership over an entity, asset, or decision-making process to another party.

Transfer of Receivables

This refers to the process where a company assigns the right to collect cash from its outstanding invoices to another party, often in exchange for immediate cash.