When a Seller Sells on Credit and Is Given a Security

question 40

Multiple Choice

When a seller sells on credit and is given a security interest in the goods,that interest is called:

• A) a purchase money security interest.
• B) a future transaction.
• C) a floating lien.
• D) none of the above.

---

Definitions:

Economies Of Scale

Cost advantages reaped by companies when production becomes efficient, as the scale of operation increases, leading to a lower cost per unit.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

International Trade

The exchange of goods and services between countries.

Current Account

An account of a country’s exports and imports of goods, services, and income.