CIPS Exam L5M3 Topic 1 Question 1 Discussion

Actual exam question for CIPS's L5M3 exam

Question #: 1
Topic #: 1

Sam is a factory manager and has purchased a new fixed asset on a loan purchase agreement. There is a forbearance agreement between the Factory and the provider. What does this mean?

Athe lender agrees to give the breaching party a period of time as an extension by which to meet their obligations

Bthe lender requires the buyer to assign a guarantor in case they cannot make payments

Cthe lender is able to demand full payment of outstanding balances in case of none pay-ment

Dthe lender is able to charge interest on the purchase in line with RPI

Show Suggested Answer

Suggested Answer: A

1 is the correct answer. This is a direct quote from p. 104 of the study guide.

by Kristeen at Nov 16, 2022, 06:44 AM

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