Asset Based Loans

question 32

Multiple Choice

Asset based loans:

• A) are not generally tied to inventory.
• B) include loans to finance leveraged buyouts.
• C) put more weight on cash flow than collateral when evaluating the loan.
• D) All of the above.
• E) None of the above.

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Definitions:

Innocent Purchaser

A buyer who acquires property without knowledge of any existing claims, disputes, or encumbrances against it.

Ultra HD TV

A television display technology that offers significantly higher resolution than the standard High Definition, providing sharper and more detailed images.

All-Terrain Vehicle

A vehicle designed for off-road travel on various types of terrain, often referred to as an ATV.

F.O.B.

A commercial term indicating that the seller is responsible for goods until they are loaded onto a transport at a specified location, at which point the buyer assumes risk and responsibility.