The predictability of the project's revenue stream is essential in securing project financing. Which of the following is NOT a typical contract provisions that are intended to assure adequate cash flow?
A) quantity and quality of the project's output
B) a pricing formula
C) circumstances that permit changes in the contract
D) fronting loan

Question

Quizplus · Accepted Answer

A fronting loan is a type of financing arrangement where a financial institution provides a loan on behalf of a borrower, and the borrower repays the loan directly to the financial institution. It is not a contract provision intended to assure adequate cash flow. The other three choices (A, B, C) are typical contract provisions that are intended to assure adequate cash flow by defining the quantity and quality of the project's output, establishing a pricing formula, and outlining circumstances that permit changes in the contract.

The Predictability of the Project's Revenue Stream Is Essential in Securing