Which of the Following Is a Commonality Shared by Buildings

question 40

Multiple Choice

Which of the following is a commonality shared by buildings and inventory with respect to financing a business?

• A) Each is subject to a particular set of enforcement procedures.
• B) Both can serve as collateral for business loans.
• C) Both are commonly used in letters of credit to distribute default risk.
• D) Each is subject to a particular set of legal rules.

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Definitions:

Company's Facilities

The physical infrastructure and assets of a company, including buildings, machinery, workspaces, and technology equipment, that support its operations.

Physical Controls

Controls that restrict unauthorized individuals from gaining access to a company’s computer facilities.

Risk Transference

The strategy of transferring the potential impact of specific risks from one party to another, often by using insurance or other contractual agreements.

Purchasing Insurance

The act of buying protection against financial losses from an insurance company.