Which of the Following Legal Documents Would Not Be Used

question 17

Multiple Choice

Which of the following legal documents would not be used by a lender to secure collateral for a loan to buy a restaurant?

• A) Mortgage
• B) Deed of Trust
• C) Quitclaim Deed
• D) UCC-1 Financing Statement
• E) Deed to Secure Debt

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Definitions:

Positive Externalities

Benefits that affect a third party not directly involved in a transaction or activity, resulting in a positive effect on society.

Principal-Agent Problem

A dilemma in economics where one party (the agent), acting on behalf of another party (the principal), may have different goals or incentives, potentially leading to inefficiencies.

Corporate Ownership

Refers to the ownership structure of a corporation, typically involving shareholders who possess rights and responsibilities.

Corporate Control

The ownership structure or governance framework that determines the strategic direction and decisions of a company.