It Is Unlikely That a Company Would Want to Bond

question 52

True/False

It is unlikely that a company would want to bond its employees who handle cash or inventory.

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Definitions:

Collateral

An asset that a borrower offers to a lender as security for a loan, which may be forfeited in case of default.

Debtor Default

A situation in which a debtor fails to meet the legal obligation of debt repayment, possibly leading to legal action by the creditor.

Secured Party

An individual or entity that holds an interest, typically a security interest, in the debtor's collateral to secure payment or performance of an obligation.

Purchase-Money Security Interest

A legal claim or lien on collateral that secures payment of the price of goods bought.