A type of business loan that is generally made for high-priced items like new automobiles or trucks, where the business holds the item in inventory and pays interest, and where the asset is still owned by the lender until it is sold, is known as which of the following?

Question

Quizplus · Accepted Answer

Floor planning is a specific type of loan used by businesses, especially in the automotive industry, to purchase high-cost inventory such as vehicles. The lender pays for the inventory, but holds the title or ownership until the item is sold, at which point the loan is repaid.

A Type of Business Loan That Is Generally Made for High-Priced