Asset-Based Lending Is

question 34

Multiple Choice

Asset-based lending is:

• A)based on an underlying asset that serves as collateral in the event of default
• B)financing that is tied directly to a particular asset
• C)a and b
• D)none of the above

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Definitions:

Altered

Altered denotes something that has been changed, modified, or adjusted from its original form or state.

Negotiable

A term indicating that the terms and conditions of something, such as a financial instrument or contract offer, can be discussed and altered by involved parties.

Conversion

The unauthorized act of taking someone else's property and converting it to one's own use, violating the owner's rights.

Indorsement

The act of signing one's name on the back of a check or other negotiable instrument for the purpose of transferring ownership or to approve the terms.