The Essential Difference Between a Fixed Charge and a Floating

question 56

Multiple Choice

The essential difference between a fixed charge and a floating charge relates to:

• A)whether or not the charge must be registered.
• B)the length of time the charge exists.
• C)the enforceability of the charge against third parties.
• D)the time when the particular assets that will be subject to the charge become known.

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Definitions:

Federal Government

The national government of a federal country, which holds the authority over matters that affect the country as a whole.

Horizontal Equity

The principle that individuals with similar incomes or circumstances should be taxed at the same rate.

Demographic Trends

Patterns in the composition of a population over time, such as age, race, gender distribution, which can influence various aspects of societal behavior and policy.

Government's Budget Deficit

A situation where a government spends more than it earns in revenue over a specific period.