Inventory may be used as collateral for a loan. If it is, the inventory is classified as:

Question

Quizplus · Accepted Answer

Inventory refers to physical goods that a business has on hand for sale or production purposes. Therefore, it is considered tangible property and can be used as collateral for a loan. Intangible property refers to assets that have no physical form, such as patents or copyrights. Intellectual property includes intangible property that is related to creative works, such as movies or books. Real property refers to physical property, such as land or buildings, while gross property is not a recognized term in financial or business contexts.

Inventory May Be Used as Collateral for a Loan