Examveda

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

C. stock financing

D. interest cost

Answer: Option B

Solution (By Examveda Team)

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.

This Question Belongs to Commerce >> Financial Management

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