Retailers Sometimes Refer to Losses from Both Theft by Outsiders

question 17

Multiple Choice

Retailers sometimes refer to losses from both theft by outsiders and theft by employees as _____.

• A) fidelity
• B) restitution
• C) kleptomania
• D) shrinkage

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Definitions:

Perfection

In finance and law, the process of securing a security interest in collateral through legal documentation and registration.

First Claim

The priority right to make a demand or assert a right before others; often used in financial contexts, such as creditors having first claim on assets.

Purchase-Money Security Interest

A legal claim that allows a lender to repossess or foreclose on property if the borrower fails to repay a loan used to purchase the property.

Collateral

Assets pledged by a borrower to secure a loan or credit, which can be seized by the lender if the borrower fails to make required payments.