There Are Additional Disclosure Requirements for a Loan That Carries

question 13

True/False

There are additional disclosure requirements for a loan that carries a high rate of interest or entails high fees for the borrower.

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Definitions:

Fixed Expenses

Financial obligations that stay uniform in spite of changes in manufacturing or sales figures, like leasing expenses, salaries for workers, and insurance outlays.

Operating Leverage

A financial concept that measures a company's fixed costs as a percentage of its total costs, indicating how a change in sales will impact profits due to fixed expenses.

Wire Strippers

A hand tool used to strip the insulation from electric wires.

Manufacturer

A person or company that makes goods for sale, typically involving machinery and labor.