What does it mean for a new business loan to be collateralized? a. Should the bu
ID: 2479209 • Letter: W
Question
What does it mean for a new business loan to be collateralized?
a.
Should the business fail, the loan is simply not repaid.
b.
The lender may sell a specific asset to recover the loan
c.
The borrower does not pay interest on the loan.
d.
The borrower only pays interest when the entire loan is due.
a.
Should the business fail, the loan is simply not repaid.
b.
The lender may sell a specific asset to recover the loan
c.
The borrower does not pay interest on the loan.
d.
The borrower only pays interest when the entire loan is due.
Explanation / Answer
The lender may sell a specific asset to recover the loan