Why Is the Unencumbered Status of Assets Considered to Be

question 67

Multiple Choice

Why is the unencumbered status of assets considered to be a distinguishing characteristic?

• A) They are typically worth more than the existing debt.
• B) They are typically acquired after giving a security interest.
• C) Lenders typically find them most attractive as security.
• D) Lenders typically find their portability to be a risk.

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Definitions:

Illegitimate Power

Authority or influence that is exerted through unethical, coercive, or unauthorized means, often disregarded by those subjected to it.

Information Power

The influence and control one has due to possessing valuable knowledge, facts, or data that others do not have.

Referent Power

A form of influence that one individual has over another based on the strength of their relationship or the charisma and likability of the person who holds power.

Coercive Power

The ability of a person or group to enforce compliance through threats or punishment.