Lenders are?

• A. Internal teams that manage budgets.
• B. Outside sources that provide money to businesses for a fixed interest rate and time period.
• C. Insurance providers.
• D. Customers who purchase goods on credit.

Answer: (B)

Lenders are external sources that provide funds to a business in exchange for interest over a defined period. They’re not part of the company, but outside financiers like banks or other financial institutions. The money is lent up front and must be paid back later with a set interest rate and repayment schedule, which is how lenders earn income.

Internal teams that manage budgets aren’t lenders; they’re part of the organization’s own planning and control. Insurance providers offer protection rather than financing. Customers who buy goods on credit are borrowers from sellers, not lenders.