One thing lenders sometimes require when lending money to a small corporation is an assignment
of the common stock as collateral on the loan. Then, if the business fails to repay its loan, the
ownership of the stock certiﬁcates can be transferred directly to the lender. Why might a lender
want such an assignment? What advantage of the corporate form of organization comes into play
here?

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The Answer of One thing lenders sometimes require when lending money to a small corporation is an assignment
of the common stock as collateral on the loan. Then, if the business fails to repay its loan, the
ownership of the stock certiﬁcates can be transferred directly to the lender. Why might a lender
want such an assignment? What advantage of the corporate form of organization comes into play
here?

One Thing Lenders Sometimes Require When Lending Money to a Small