With "Floor Plan" Financing, Title to the Product in the Franchisee's

question 16

Multiple Choice

With "floor plan" financing, title to the product in the franchisee's inventory is:

• A) held by the franchisee.
• B) held by a third party.
• C) held by the franchisor.
• D) there is no title to the product.

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Definitions:

Securities Act

Legislation that regulates the issuance and sale of securities to protect investors from fraud.

Net Financial Assets

The difference between a person's or entity's total financial assets and total financial liabilities.

Security

Financial instruments or assets held to back debts or investments, or as a means to ensure the fulfillment of financial obligations.

Insurance Contract

A legally binding agreement between an insurer and the insured, detailing the terms for the payment of claims under certain conditions.