Which of the Following Statements Holds True for Fronting Loan

question 38

Multiple Choice

Which of the following statements holds true for fronting loan?

• A)It refers to the process of financing long-term outlays for major projects such as plant expansion, entry into new markets, or research and development.
• B)It refers to raising capital by borrowing the money and agreeing to repay the entire amount plus agreed-upon interest at a specific date in the future.
• C)It refers to a process which in which the parent company directly gives a loan to its subsidiary.
• D)It refers to the funding of the subsidiary by the parent company through a financial intermediary such as a bank.
• E)It refers to the loan on which the bank charges companies a slightly lower rate of interest for expanding operations in developing countries.

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Definitions:

In-Group Members

Individuals who belong to a specific group or category perceived by its members as an 'us,' often leading to a strong sense of affiliation and identity.

Integration Structures

Refers to mechanisms and processes designed to facilitate coordination and collaboration among different departments or units within an organization.

Strategic Resource

A resource considered crucial for sustaining a competitive advantage because it is valuable, rare, inimitable, and non-substitutable.

Business Unit

refers to a division, department, or section of an organization that focuses on specific business functions or market segments, operating semi-independently.