Taking Advantage of Contingencies That Occur Along the Way Is

question 45

Multiple Choice

Taking advantage of contingencies that occur along the way is emphasized in the effectual school of thought. Which of the five principles is this connected to?

• A) Lemonade principle
• B) Affordable loss principle
• C) Bird-in-hand principle
• D) Patchwork principle
• E) Pilot-in-the-plane principle

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Definitions:

Unsecured Debt

A type of debt or general obligation that does not have collateral backing and is issued solely based on the creditworthiness and reputation of the issuer.

Credit Standing

An assessment of a person or entity's ability to repay debts, often influenced by past borrowing and repayment history.

Collateral

An asset pledged as security for repayment of a loan, forfeitable in the event of a default.

Unsecured Loans

Loans that are provided without requiring collateral from the borrower.