A Floating Charge Allows a Company to Raise Capital by Borrowing

question 3

Multiple Choice

A floating charge allows a company to raise capital by borrowing money which is secured (guaranteed) by:

• A)the creditor's right to appoint a Plimsoll salvage manager if the repayment agreement is broken.
• B)a personal guarantee by the directors.
• C)assets that can be used,sold or transferred by the company until the repayment agreement is broken.
• D)the creditor's right to sell specific assets if the repayment agreement is broken.