Which item would constitute poor collateral for an inventory loan?
A) lumber
B) vegetables
C) grain
D) chemicals

Question

Quizplus · Accepted Answer

Vegetables are perishable and have a short shelf life, which makes them a poor choice for collateral as they may lose their value quickly. Lumber, grain, and chemicals are all durable goods that can be stored for longer periods of time, making them better choices for inventory loans.

Which Item Would Constitute Poor Collateral for an Inventory Loan