Collateral Is ________ the Lender Receives If the Borrower Does

question 113

Multiple Choice

Collateral is ________ the lender receives if the borrower does not pay back the loan.

• A)a liability
• B)an asset
• C)a present
• D)an offering

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Definitions:

Excess Capacity

A situation where a business produces less than it is actually capable of because there is not enough demand for its product or service.

Output Contract

A legal agreement in which a seller agrees to sell all the production to a particular buyer, who in turn agrees to purchase the entire output.

Needs Contract

A contract or agreement tailored to address and fulfill specific needs of the parties involved.

Good Faith

Acting with honest intentions without seeking to take unfair advantage in a transaction or situation.