Which of the Following Is True About Possession of Collateral

question 29

Multiple Choice

Which of the following is true about possession of collateral by secured party as public notice?

• A) Change of possession is a convenient way for perfecting most security interests in consumer goods.
• B) Possession of collateral by the creditor is rarely executed to perfect a security interest in chattel paper and negotiable documents of title.
• C) Possession is a possible way of perfecting a security interest in inventory which is achieved through a field warehousing arrangement.
• D) Possession by the creditor is a practicable way of perfecting a security interest in equipment or farm products.

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Definitions:

Assumption of Cost

The process by which one party agrees to take on the financial responsibility for certain costs, often seen in contracts or agreements.

Trade Shows

Events where companies within a specific industry showcase and demonstrate their latest products and services, meet with industry partners and customers, study activities of rivals, and examine recent market trends and opportunities.

B2B Sales

Business-to-Business sales involve transactions between two companies, rather than between a company and individual consumer.

Preapproach Stage

The stage in the selling process where the salesperson gathers information and prepares for a sales presentation.