Which Item Would Constitute Poor Collateral for an Inventory Loan

question 133

Multiple Choice

Which item would constitute poor collateral for an inventory loan?

• A) lumber
• B) vegetables
• C) grain
• D) chemicals

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Definitions:

Computation

The process of performing mathematical calculations or processing data using algorithms, often carried out by computers.

Average Accounting Return

A financial ratio that reflects the average net income that a project or investment generates compared to its initial cost or average investment.

Arbitrary Value

An arbitrary value is a value assigned based on discretion or judgment rather than from an objective calculation or measurement.

Project Measurement

The process of quantifying the performance and progress of a project against predefined benchmarks.