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A loan in which the lender may share in the income or resale proceeds, becoming a partner rather than just a lender.

True
False

User Lisachenko
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1 Answer

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Final answer:

FALSE. A loan in which the lender may share in the income or resale proceeds and becomes a partner rather than just a lender is known as an equity loan or a participating loan.

Step-by-step explanation:

A loan in which the lender may share in the income or resale proceeds and becomes a partner rather than just a lender is known as an equity loan or a participating loan. In this type of loan, the lender becomes a partner in the business or project and shares in the profits or proceeds. This is different from a traditional loan where the lender only receives interest or principal repayment.

User Azeame
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