When Is a Creditor a Secured Creditor

question 62

Multiple Choice

When is a creditor a secured creditor?

• A) when the creditor has been guaranteed payment by a trustee
• B) when the creditor gives a loan without security
• C) when the creditor has been paid back his or her debt
• D) when the creditor has a security interest in collateral

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Definitions:

Trade Discounts

A reduction in price given by a supplier or manufacturer to a buyer based on the quantity of product purchased or the immediate payment of goods.

Future Marketing

Strategies and efforts made to plan and execute marketing activities targeting future trends and consumer needs.

Cash Discount

A reduction in invoice amount by a seller as an incentive for early payment by the buyer.

Net 30

A payment term that indicates the full payment is due 30 days from the invoice date.