Allocating Resources by the Order of Someone in Authority Is

question 62

Multiple Choice

Allocating resources by the order of someone in authority is a ________ allocation method.

• A) first-come, first-served
• B) market price
• C) contest
• D) majority rule
• E) command

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Definitions:

Equipment

Machinery or tools necessary for a particular activity, task, or for the operation of a business.

Secured Creditor

A creditor that has a legal interest, usually called a lien, in a debtor’s property, securing the debt and giving the creditor rights to the property if the debt is not repaid.

Collateral

Assets pledged by a borrower to secure a loan, which can be seized by the lender if the loan is not repaid.

Security Interest

A legal claim or lien on assets which secures the performance of an obligation, usually repayment of a loan.