Which of the Following Is Recommended If You Loan Money

question 56

Multiple Choice

Which of the following is recommended if you loan money to a friend or relative?

• A)Charge interest at a rate comparable to any high-risk security.
• B)Always consider offering cash as a gift instead of extending a loan.
• C)Put the agreement in writing.
• D)Ensure that the loan is due within one year or less.
• E)Make informal transactions for friends and relatives.

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Definitions:

Ideation

The creative process of generating, developing, and communicating new ideas.

Wild Ideas

Innovative or unconventional thoughts that diverge from the norm or standard ways of thinking.

Brainstorming Sessions

Collaborative group meetings focused on generating ideas and solutions around a specific topic or problem, emphasizing creativity and quantity of ideas.

Creative Leaps

Significant and innovative shifts or breakthroughs in thinking, making, or understanding, often leading to original outcomes or solutions.