A Company Stops Stocking an Item but Procures It Directly

question 39

Multiple Choice

A company stops stocking an item but procures it directly from the manufacturer.This implies that the company has made a change in its ________.

• A)credit policy
• B)product line
• C)supply chain
• D)distribution structure

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Definitions:

Security Interest

A legal claim or lien on collateral that has been pledged, usually to secure repayment of a loan or debt.

Purchase-Money Security Interest

A security interest in property that secures the extension of credit by a lender to the borrower for the purpose of acquiring the property.

Perfection

In legal and financial contexts, it refers to the act of completing all necessary steps to establish a secured interest or claim that is enforceable against others.

Purchase Money Security Interest

A legal claim that allows a lender to repossess or foreclose on property if the borrower fails to pay back a loan used to purchase the property.