Rex Associates Has a Poor Credit Rating and Is Finding

question 21

Multiple Choice

Rex Associates has a poor credit rating and is finding it difficult to obtain loans.In order to fund a new project,the company decides to let out one of its buildings to a bank.The company obtains funds in return from the bank.This is an example of ________.

• A) unsecured lending
• B) factoring
• C) leasing
• D) long-term lending
• E) short-term lending

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Definitions:

Monthly Rental

The amount of money paid periodically (typically monthly) by a tenant to a landlord for the use of a property or space.

Square Footage

Indicates how much floor space is available in a living space.

Sales Tax

A tax paid to a governing body for the sales of certain goods and services.

Closing Fees

Charges and costs associated with the finalization of a real estate transaction or the closing of a loan.