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:

Series RC

A circuit configuration where a resistor and a capacitor are connected sequentially in a single path for current to flow.

Capacitive Circuit

A type of electrical circuit that primarily contains capacitors among other components, which stores and releases electrical energy.

Electric Degrees

A unit of measurement used in electrical engineering to describe phase angle, where 360 electric degrees correspond to one full cycle of a sine wave.

Series RC

Refers to an electrical circuit in which a resistor and a capacitor are connected in a series configuration, affecting the circuit's overall impedance and phase angle.