Which of the Following Is a Distinguishing Characteristic of an Unsecured

question 29

Multiple Choice

Which of the following is a distinguishing characteristic of an unsecured debt?

• A) the loan must be advanced within a designated period
• B) the financing arrangements are formal and deliberate
• C) the incidental feature of routineness
• D) the absence of security interest in debtor's assets

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Definitions:

Dilemma of Regulation

The challenge of finding the right balance in regulatory policies, where too much regulation can stifle innovation and economic growth, while too little can lead to market failures and exploitation.

Natural Monopolies

Situations in which a single firm can supply a good or service to an entire market more efficiently than multiple firms could, often due to high infrastructure costs making competition impractical.

Allocative Efficiency

An economic state where resources are allocated in a way that maximizes the net benefit to society, considering both production and desires of consumers.