Which of Statements A) Through D) Concerning Project Finance Is

Multiple Choice

Which of statements a) through d) concerning project finance is FALSE?

A) Debt in a project finance arrangement is contractually linked to the cash flow generated by the project.
B) Governments participate in project finance in the form of infrastructure support, guarantees, and assurances against political risk.
C) In project finance, claims are contractually tied to the cash flows of the project.
D) The cash flows of a project are commingled with other corporate cash flows.
E) The project is a separate legal entity and relies heavily on debt financing.