Distinguish between secured and unsecured credit.
What will be an ideal response?
Unsecured credit does not require any security to protect the payment of the debt. Instead, the creditor relies on the debtor's promise to repay the principal (with interest, if applicable) when it is due. In deciding whether to make the loan, the unsecured creditor considers the debtor's credit history, income, and other assets. If the debtor fails to make the payments, the creditor may bring legal action and obtain a judgment against him or her. Secured credit refers to credit that requires security that secures payment of the loan. Security interests may be taken in real, personal, intangible, and other property. If the debtor fails to make the payments when due, the collateral may be repossessed to recover the outstanding amount.
You might also like to view...
Why is it important that a paralegal have a basic understanding of accounting principles?
What will be an ideal response?
FMS, in the context of manufacturing flexibility, refers to?
a. Fast manufacturing system b. Focused manufacturing system c. Flash manufacturing system d. Flexible manufacturing system
Progress reports are written for only internal readers
Indicate whether the statement is true or false
The resource constraints are modeled in LP mathematically as ______.
A. inequalities B. equalities or inequalities C. linearity D. variables