Choose the one word or phrase that best completes the sentence and fill in the appropriate answer above.
1-
The Bank of America offers asset-based loans, which are ......... by a company's accounts receivable, inventory, equipment, and/or real estate.
A -
assured
B -
covered
C -
obtained
D -
secured
2-
Asset-based loans are an alternative to traditional bank lending because they serve borrowers with risk characteristics typically outside a bank's ......... level.
A -
collateral
B -
comfort
C -
confidence
D -
control
3-
A bank will look first to the cash ......... for the repayment of a loan, then to collateral, while an asset-based lender looks to collateral first.
A -
deposits
B -
flow
C -
on hand
D -
option
4-
Banks typically require less collateral controls and monitoring but more financial ..........
A -
commitments
B -
contracts
C -
conversions
D -
covenants
5-
......... financing is often used by under-performing businesses that are not achieving their full potential; it is sometimes used for businesses that are either insolvent or on their way to becoming insolvent.
A -
Remedial
B -
Reversal
C -
Touchstone
D -
Turnaround
6-
Debtor-in-possession (DIP) refers to a company that has filed for ......... under Chapter XI of the Federal Bankruptcy Code and has been permitted by the bankruptcy court to continue its operations to effect a formal reorganization. protection provisions penury prosecution.
A -
penury
B -
prosecution
C -
protection
D -
provisions
7-
In a leveraged buyout (LBO), the target company's assets are used as collateral for debt, and its cash flow is used to ......... debt accrued by the buyer to acquire the company.
A -
absolve
B -
assume
C -
restructure
D -
retire
8-
A Leveraged ESOP (Employee Stock Ownership Plan) allows a company to raise its capital-to-asset ......... by issuing new shares of stock to an employee trust, which finances the transaction with an asset-based loan.
A -
advantage
B -
percentage
C -
ratio
D -
stance
9-
A typical loan agreement with an asset-based lender provides protections, rights, and ......... for both parties.
A -
remedies
B -
responses
C -
services
D -
solutions
10-
The level of controls and monitoring by the asset-based lender is directly related to the credit ......... of the borrower.