After Graduating, a Student Set Up a Business as a Systems

question 63

Multiple Choice

After graduating, a student set up a business as a systems analyst. His monthly billings are healthy, about $10,000 a month. He rents his office, hardware, and furniture and owns few assets. He rents his apartment, has no car, and spends most of his income on concerts. If he approaches you, a bank manager, to borrow $50,000 for the purpose of increasing his working capital, which of the following securities would you most likely request?

• A) Assignment of accounts receivable
• B) Security under sections 426 and 427 of the Bank Act
• C) Conditional sale contract
• D) Floating charge debenture
• E) Chattel mortgage

---

Definitions:

Culture Clash

A conflict arising from differences in cultural values, beliefs, and practices between individuals or groups.

Attraction-Selection-Attrition Theory

A theory suggesting that organizations tend to attract and select individuals with similar personalities and values, and people who do not fit will leave or be forced out.

Separation Strategy

A method or plan devised by a company to manage the process of employees leaving the organization, either through resignation, layoffs, or retirement, in a manner that minimizes negative impacts.

Unrelated Industries

Sectors or fields of business that do not share common markets, products, services, or technologies.