Collateral Refers To

question 209

Multiple Choice

Collateral refers to:

• A) a company's ability to extend credit to a customer
• B) the debtor's ability to pay
• C) the debtor's financial condition
• D) the debtor's reputation
• E) none of the other choices are correct

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Definitions:

Ratification

The adoption of a contract or act of another by a party who was not originally bound by the contract or act.

Breach

The violation or infringement of a law, agreement, or code of conduct.

Secret Commission

A payment made to an agent or a representative for facilitating a transaction or agreement, typically without the knowledge of some or all of the principal parties involved.

Commission Recovery

The process by which a salesperson, agent, or broker seeks to reclaim commission fees that were not paid as agreed upon in a transaction.