Collateral Is Typically Required for a ________

question 97

Multiple Choice

Collateral is typically required for a ________.

• A) secured short-term loan
• B) line of credit
• C) short-term, self-liquidating loan
• D) single-payment note

---

Definitions:

Cash

The most liquid form of financial assets, readily available for transactions or any immediate need.

Common Stock

A type of financial security that represents ownership in a corporation, giving holders a share of the firm's profits and voting rights.

Accounts Payable

Accounts payable are liabilities or amounts owed by a company to its creditors for goods and services purchased on credit.

Accounts Receivable

Financial obligations of customers towards a business for provided goods or services, yet to be remunerated.