BFN405 Solutions

BFN405 Tma Solutions

1. There are many uses of working capital loan except..

financing imprest

for short term financing of activities

financing official trip

—>> for long term financing

2. the rights of the bank in case of default include…

selling off all property of customer

close all business premisess

start business operation

—>> posses and sell the property involved

3. In considering term loan is not considered

assess bank’s liquidity position

—>> educational background

composition of loan

liquidity of assets

4. Agric loan risk is not associated with

—>> number of loan applications

income changes from agriculture

not able control supply

weather effect

5. One of these is not a current liability

cash payable

—>> motor vehicles

shrt term loan

rent due

6. One of these is a working capital loan

capital

long term loan

—>> line of credit

collateral

7. group is not granted an agric loan

farmers

farmers cooperative soceity

—>> mining individual farmers

agric firms

8. ….is not considered for working capital management

accounts payable

accounts receivable

—>> working experience

inventory mgt

9. Current assets include these except

—>> long term loan

inventory

debtors

cash in hand

10. An agric loan cannot be granted on

food production

wood production

textile production

—>> iron production

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