The Wilsons Have a Lavish Mansion That They Reside In Owing

question 10

Multiple Choice

The Wilsons have a lavish mansion that they reside in. Owing to old age, they avoid using the rooms in the upper floors. A friend suggest that the Wilsons use RentORooms, a lodgings broker, to rent out the unused space to people who are looking out for rented rooms. This scenario best exemplifies the system of _____.

• A) business triage
• B) the distributed partnership
• C) security freezing
• D) the peer economy

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Definitions:

Capital

Financial assets or the value of financial assets used for the creation of goods or services or for investing.

Pledging

The act of providing an asset as security or collateral for a loan, ensuring the lender can claim the asset if the loan is not repaid.

Receivables

Money owed to a company by its clients or customers for goods or services provided on credit.

Accounts Receivable

Money owed to a business by its customers for goods or services delivered but not yet paid for, considered an asset on the balance sheet.