Which of the Following Observations Is Not Correct

question 54

Multiple Choice

Which of the following observations is not correct?

• A)Most loans are sold with recourse.
• B)Loan sales are a primitive substitute for securitisation.
• C)Selling of a loan creates a secondary market for loans.
• D)Ownership of the loan is always transferred to the loan purchaser.

Distinguish the various sections of a business plan and their purposes.

Recognize the importance of the marketing plan section and how it ties to sales and distribution strategies.

Understand the operational aspects of a business, including manufacturing, facilities, and labor force requirements.

Comprehend the role of financial documents in business planning, including cash-flow statements, balance sheets, and profit-and-loss statements.

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Definitions:

Expected Useful Life

The estimated length of time a fixed asset will be used in normal operations.

Placed in Service

Refers to the point in time when an asset begins to be used by a business for its intended purpose, marking the start of depreciation.

Asset

Items of value owned by a company, including tangible and intangible resources, that can be converted into cash.

Second-Year Depreciation

The depreciation expense allocated in the second year of an asset's useful life, considering the chosen depreciation method.