A Lien Is the Legal Right to Take and Hold

question 55

True/False

A lien is the legal right to take and hold property or to sell it in the event the borrower defaults on the loan.

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Definitions:

Retained Earnings

The portion of net income that is not distributed to shareholders but instead is reinvested in the business or used to pay off debt.

Net Income

The final profit figure for a company, arrived at by subtracting all operational costs and taxes from its total revenue.

Dividends

Funds distributed by a company to its shareholders, typically from the company's earnings.