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The Risk of Default on Pledged Accounts Receivable Is Borne

question 114

True/False

The risk of default on pledged accounts receivable is borne by the lender to whom the receivables are pledged.


Definitions:

Sale of Goods

A transaction where the ownership of tangible personal property is transferred from one party to another, usually in exchange for a price.

Writing

The act or process of composing text or creating a written record of thoughts, information, or transactions.

Oral Contracts

Agreements that are made verbally and not put into writing, which can be legally binding in certain circumstances.

Customized Goods

Products that are personalized or tailored to meet the specific preferences or requirements of an individual customer.

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