Which One of the Following Statements Is Correct Concerning Inventory

question 168

Multiple Choice

Which one of the following statements is correct concerning inventory loans?

• A) Under a field warehousing arrangement, the lender, acting on its own behalf, controls the inventory.
• B) A trust receipt arrangement means that the entire inventory of a firm is being used as collateral for the loan.
• C) A general security agreement is used for large-ticket inventory items, such as vehicles, which are easy to identify specifically.
• D) A floor plan is another name for a type of lending involving trust receipts.
• E) Public warehousing firms are utilized to oversee all general security agreements.

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Definitions:

Tender Offer

A public, open offer or invitation (usually made by a company) to all shareholders to sell their shares at a particular price during a specified time.

Proxy Contest

A competition for the control or influence over a company by requiring shareholders to vote by proxy.

Shareholder Votes

The process by which shareholders exercise their right to make decisions on corporate matters, typically exercised during annual general meetings.