QUESTION: 85

When a short-term loan is paid with a lump sum payment and the payment includes both interest and principal, the loan is often referred to as a:

single payment note.
material payment note.
balloon payment note.
commercial note.

Answer(s): A

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QUESTION: 86

The right of stockholders to purchase, on a pro-rata basis, any new shares issued by the company is referred to as:

preemptive right.
right of first refusal.
existing ownership right.
prevention of dilution right.

Answer(s): A

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A distribution business has used several bank loans to finance its expansion plans. After a fire destroyed the company’s facility and inventory, it went out of business due to the loss of revenue during the month it was closed. What type of insurance coverage should the company have had to prevent its demise?

Cost reimbursement
Property
General liability
Business interruption

Answer(s): D

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QUESTION: 88

From a buyer’s perspective, which of the following types of float would be eliminated if checks were replaced by electronic payment methods?

Collection
Invoicing
Disbursement
Lockbox

Answer(s): C

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Free CTP Exam Braindumps (page: 23)

QUESTION: 85

QUESTION: 86

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QUESTION: 88

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