Kimberly owns a company that sells industrial tools.She borrows $50,000 from a bank with her company's accounts receivable as the collateral.This means that if Kimberly defaults on the loan,the bank can reclaim the borrowed amount from her company's accounts receivable.This is an example of ________.

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This is an example of a floating lien, which is a type of collateral that moves or "floats" with the assets of a company. In this case, the bank can reclaim the borrowed amount from Kimberly's company's accounts receivable if she defaults on the loan. A mortgage typically involves using a specific property as collateral, and foreclosure is the legal process of taking possession of that property due to a default on the mortgage loan. A mechanic's lien is a type of lien that gives a contractor or subcontractor the right to claim payment if they are not paid for work they did on a property.

Kimberly Owns a Company That Sells Industrial Tools