Which of the Following Reasons for Considering Long-Term Loans Inherently

question 48

Multiple Choice

Which of the following reasons for considering long-term loans inherently more risky than short-term loans is most accurate?

• A)There is a greater chance that a borrower will default in a longer time-frame.
• B)The penalties for closing out a long term loan early make them unattractive to many investors.
• C)Long term loans typically have ongoing costs that accumulate over the life of the loan.
• D)The loan values are very sensitive to changes in market interest rates.

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Definitions:

Marketing Communications

The various methods and channels used by a company to convey its marketing messages to the target audience, including advertising, public relations, social media, and more.

Ultimate Goal

The final aim or objective intended to be achieved in any given project or strategy.

Sales Promotions

Short-term incentives or events designed to increase interest, enhance product demand, or stimulate sales of a product or service.

Imc Channel

The use of various promotional tools in a coordinated manner to reinforce the marketing message in integrated marketing communications.