Vidyalelo
Commerce · Q430

Financial Management

Graduate and Post Graduate · Commerce · question 430

Q430

Special situation in which large projects are financed by with and securities claims on project's cash flow is classified as

A.
claimed securities
B.
project financing
Answer
C.
stock financing
D.
interest cost

Answer: Option B

Solution

Answer: Option B
Solution:
Special situation in which large projects are financed by with and securities claims on project's cash flow is classified as project financing. Project financing is a loan structure that relies primarily on the project's cash flow for repayment, with the project's assets, rights, and interests held as secondary collateral. Project finance is especially attractive to the private sector because companies can fund major projects off-balance sheet.