Mason Corporation Borrows Funds for the Expansion of Its Business

question 22

Multiple Choice

Mason Corporation borrows funds for the expansion of its business. The loan is secured with the office building. Therefore, the office building serves as _____ for the loan.

• A) a liability
• B) collateral
• C) debt
• D) insurance
• E) corporate deposit

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Definitions:

Restraining Forces

Factors or conditions that resist or oppose change, hindering progress towards achieving desired goals or transformations.

Negotiate

To discuss and arrive at a mutual agreement between parties with differing needs or views.

Communicate

The process of conveying information and meaning between or among individuals through the use of mutually understood signs, symbols, and language.

Driving Forces

Factors that motivate and push towards the achievement of a particular goal or change.