Calculating Fees on a Loan Commitment During the Last Year

question 9

Multiple Choice

Calculating Fees on a Loan Commitment During the last year you have had a loan commitment from your bank to fund inventory purchases for your small business.The total line available was $500,000,of which you took down $400,000.It is now the end of the loan commitment period and your bank is asking you to pay the back-end fees.You have misplaced the paperwork that listed the terms of the commitment,but you know you paid total fees (this does not include any interest paid to borrow the $400,000) of $1,750 on this loan commitment.You remember that the up-front fee was 25 basis points.What is the back-end fee on this loan commitment?

• A)5 basis points
• B)50 basis points
• C)10 basis points
• D)20 basis points

Comprehend the methodology and implications of a 360-degree appraisal.

Recognize different methods of performance appraisals and their applications.

Understand the role of supervisors in performance appraisal processes.

Awareness of common rating errors in the performance appraisal process.

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Definitions:

Process Cycle Time

The total time from the beginning to the end of a process, including processing time and any time the process is inactive or waiting.

Capacity Expansion

The process of increasing the production capabilities of a facility or system to meet expected demand increases.

Total Cost Comparisons

The process of comparing the overall costs of different alternatives or options in order to make a decision that minimizes costs while achieving desired outcomes.