Which Statement Is False Regarding Types of Collateral

question 7

Multiple Choice

Which statement is false regarding types of collateral?

• A)Collateral may include indispensable paper such as documents of title.
• B)Collateral may include goods such as equipment.
• C)Collateral may include farm products.
• D)Collateral may include proceeds.
• E)Collateral may include intangibles such as chattel paper.

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Definitions:

Firm's Equity

The value of a company's shares owned by its shareholders, representing ownership interest in the company.

Firm's Debt

The total amount of money that a company owes to creditors, encompassing both short-term and long-term liabilities.

Assembly Plant

A factory where parts are assembled into finished products.

Holding Cost

The expenses associated with storing unsold goods, including warehousing, insurance, and depreciation.