An Interest in Fixtures That a Creditor Obtains to Secure

question 6

Multiple Choice

An interest in fixtures that a creditor obtains to secure performance of an obligation is called a(n) :

• A) ownership equity.
• B) financial leverage.
• C) security interest.
• D) income trust.

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Definitions:

General Partner

A principal in a partnership who has unlimited personal liability and takes part in the management of the business.

Limited Partnership Status

A legal status for a partnership where some owners contribute capital and enjoy profits but do not participate in the management, thus limiting their liability.

General Partner

In a partnership, a party who assumes full liability for the partnership's debts and responsibilities.

Limited Partner

A type of investor in a partnership who has limited liability and is not involved in the day-to-day management of the business.