Lending

If the company has high demand risk this is consider a key risk for the following lending rationale

•    Asset conversion lending

•   Asset protection lending

• Cash Flow Lending

• All the above

The following situation is complying with the tenor matching as the company’s Trading assets is financed by Equity

• True

• Flase

1.   Which of the following is considered a characteristic of ACC lending

•      Revolving Facility – no genuine cleanup

• Is not one of the lending rationales

• Short term vehicle used to seasonal/ temporary WI

• None of The Above

Ensuring that the financed asset is maintaining an adequate value to pay the outstanding credit facilities

•   Seniority

• Protection

• Control

Ensuring that the bank is explicitly &/or implicitly senior than other creditors.

• Seniority

•    Control

• Protection

All of the following (Increase in shareholder Equity/Issue bonds/leasing) are considered external sources of finance

• True

• False

Bank interest to be paid prior to company’s operation payments

• True

• Fasle

The source of Payback the ACC lending is retention of profits overtime Accumulation of sufficient cash proceeds

• True

• False

 

All the following consider a migration strategy for Supply Risk except for

•   Depend on suppliers in different markets

• Quality control

• Qualified& experienced sales team

The Company usual preferred to close the end year financial at

•   High utilization point

• Low utilization point

• Medium Point

• Non of The above