Which of the Following Statements Is Correct About a Corporation

question 9

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:

Atomic Nucleus

The central part of an atom, composed of protons and neutrons, which contains the majority of the atom's mass.

Beta Decay

A radioactive decay process in which an unstable atomic nucleus transforms by emitting a beta particle (electron or positron).

Two-Atomic-Mass Unit

A unit of mass equal to one-twelfth the mass of a carbon-12 atom, used to express atomic and molecular weights.