All of the Following Goods Represent Appropriate Collateral for a Secured

question 115

Multiple Choice

All of the following goods represent appropriate collateral for a secured loan to a candymanufacturer except

• A) cream.
• B) individually wrapped chocolates.
• C) cocoa beans.
• D) boxes.

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Definitions:

Leverage

The use of borrowed capital or debt to increase the potential return of an investment.

Potential Returns

The expected financial gains or profits that may be realized from an investment or business venture.

Startup Businesses

Newly established enterprises in the early stages of operation, typically focused on unique product or service offerings.

Cosign

To sign jointly with another or others, especially to share responsibility for a loan or lease.