When a Creditor Extends Credit to a Debtor and Takes

question 47

Multiple Choice

When a creditor extends credit to a debtor and takes a security interest in some personal property of the debtor, it is called a ________.

• A) super-priority lien
• B) collateral claim
• C) collateral disposition
• D) secured transaction

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Definitions:

Urgency Attribute

A characteristic of messages or situations that signals immediate action or attention is required.

Legitimacy

The perception or recognition as valid, acceptable, or justified according to established rules, standards, or values.

Dominant Stakeholder

A key entity or individual who has significant influence or control over the decisions and direction of a project or organization.

Power

The ability or capacity to influence the behavior of others or the course of events, often through the possession of knowledge, wealth, or connections.