How Are Assets Used as Security Generally Classified with Respect

question 68

Multiple Choice

How are assets used as security generally classified with respect to a general security agreement?

• A) as a real property mortgage over the business's assets
• B) as an assignment of the business's accounts receivable
• C) in terms of the degree of control the lender will acquire upon default
• D) in terms of whether they are meant to be retained in the debtor's business

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Definitions:

Retire

To withdraw a financial instrument from circulation, or for an individual to leave the workforce and cease employment.

Invested

The action of allocating resources, usually money, with the expectation of generating an income or profit.

Annuity

A financial product that pays out a fixed stream of payments to an individual, typically used as part of retirement strategy.

Lottery

A form of gambling or a game of chance where participants buy tickets for a chance to win prizes, often financial in nature.