Debt is typically a secured investment; if the business fails, the business's assets would be sold in order to repay the debt.

Name: Debt is typically a secured investment; if the business fails, the business's assets would be sold in order to repay the debt.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This is true. If a business fails and it has debt, the lender has the right to seize and sell the business's assets in order to recoup the money owed. This is why debt is considered a secured investment.

Debt Is Typically a Secured Investment; If the Business Fails