When a Loan Is Secured by Receivables, the Firm Assigns

question 46

True/False

When a loan is secured by receivables, the firm assigns the receivables to the bank. If the firm fails to repay the loan, the bank can collect the receivables from the firm's customers and use the cash to pay off the debt.

---

Definitions:

Paralysis

The loss of the ability to move (and sometimes to feel anything) in part or most of the body, typically as a result of illness, injury, or poison.

Blaming

Assigning responsibility for a fault or wrong to someone, often as a way to deflect accountability or to criticize.

Alimony

Financial support paid by one ex-spouse to another following divorce or separation, often to support the recipient's living expenses.

Child Support

Financial contributions required by law or court order to be paid by a noncustodial parent to support the well-being and upbringing of their child.