A floating charge allows a company to raise capital by borrowing money which is secured (guaranteed)by:

Question

Quizplus · Accepted Answer

A floating charge allows a company to borrow money and use assets as collateral until the repayment agreement is broken. This means that the assets can be sold, transferred, or otherwise used by the company without the consent of the creditor until such time as the repayment agreement is breached. The other choices listed do not accurately describe what a floating charge is or how it works.

A Floating Charge Allows a Company to Raise Capital by Borrowing