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What Is a Public Warehouse Arrangement

Question 87

Multiple Choice

What is a public warehouse arrangement?

A) a warehouse arrangement in which the inventory is stored and tracked by the lender on the lender's premises
B) a warehouse arrangement in which the inventory is stored on the borrower's premises but is tracked by the lender
C) a warehouse arrangement in which the inventory is stored by a business that exists for the sole purpose of storing and tracking the inflow and outflow of inventory
D) a warehouse arrangement that is operated by a third party but is set up on the borrower's premises in a separate area so that the inventory collateralizing the loan is kept apart from the borrower's main plant
E) a warehouse arrangement in which the inventory is stored and tracked by the borrower on the borrower's premises

Correct Answer: