Inventory is attractive as collateral since it normally has a market value greater than its book value, which is used to establish its value as collateral.

Name: Inventory is attractive as collateral since it normally has a market value greater than its book value, which is used to establish its value as collateral.
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Question

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Inventory is typically valued at the lower of cost or market value, and its market value can fluctuate, often being less than or equal to its book value, not greater.

Inventory Is Attractive as Collateral Since It Normally Has a Market