Inventory Can Be Used as Collateral for a Loan in All

question 37

Multiple Choice

Inventory can be used as collateral for a loan in all of the following ways,EXCEPT:

• A)a floating lien.
• B)a warehouse arrangement.
• C)a factoring arrangement.
• D)a trust receipt.

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Definitions:

Ratify

To formally approve or confirm an agreement or act, making it officially valid.

Ratified

Confirmed or made official by formal consent or approval, typically used in the context of constitutional amendments or treaty agreements.

Void Ab Initio

A term referring to an agreement or contract that is considered invalid from the outset, as if it never existed.

Disaffirm

The legal act of renouncing or rejecting a contract or agreement, often used in the context of minors' ability to void contracts.