Collateralized Debt Is Also Know as

question 52

Multiple Choice

Collateralized debt is also know as

• A)unsecured debt.
• B)secured debt.
• C)unrestricted debt.
• D)promissory debt.

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Definitions:

Personal Liability

An individual’s personal responsibility for debts or obligations. The owners of sole proprietorships and partnerships are personally liable for the debts and obligations incurred by their businesses. If their firms go bankrupt or cannot meet debts, the owners will be personally responsible for the debts.

Personal Asset

An item of value owned by an individual, including tangible assets like real estate or cars, and intangible assets like stocks or intellectual property.

Investment Account

A financial account that holds securities, shares, or other investments for the purpose of long-term growth or income.

Vacation Home

A secondary residence used for leisure and vacation purposes, not as a primary living space.