Claim Dilution Arises When

question 11

Multiple Choice

Claim dilution arises when:

• A) the entity is unable to repay a loan.
• B) a lender restricts an entity from obtaining debt of a lower priority.
• C) the entity takes out a secured loan after obtaining an unsecured loan from another lender.
• D) a lender restricts an entity from obtaining debt with an earlier maturity date.

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Definitions:

Theorist

An individual who formulates and proposes theories based on observations, experiments, and reasoning.

Vygotsky

A Soviet psychologist known for his work on cognitive development, including the concept of the Zone of Proximal Development.

Parenting Style

The psychological construct representing standard strategies that parents use in raising their children.

Permissive

A parenting or leadership style characterized by low demands with high responsiveness, where rules are minimal and children are allowed considerable freedom.