The MOST Common Method of Distributing Funds Provided by a Construction

question 16

Multiple Choice

The MOST common method of distributing funds provided by a construction loan is a:

• A)Single lump sum of money at the closing of the loan
• B)Single lump sum of money at the end of the construction project to reimburse the developer for the project's expenses and profit
• C)Series of payments throughout the construction project to reimburse the developer for costs incurred since the previous payment
• D)Series of payments throughout the construction project to reimburse the developer for anticipated expenses in the upcoming period

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Definitions:

Feasibility Study

An analysis or assessment of the practicality and potential success of a proposed project or system.

Documenting

The process of creating records for events, processes, or transactions to provide evidence or maintain a history.

Testing

The process of evaluating the functionality, performance, reliability, and security of a product or system through systematic experiments and assessments.

Financial Forecast

Projections of a company's future revenue, expenses, and profitability, used to estimate economic performance and plan business strategies.