A ________ is a contract in which a business selling an asset on credit gets a security interest in that asset,protecting the company's legal rights in case the buyer fails to pay.
A)security agreement
B)lock box
C)cash on delivery agreement
D)None of the above

Question

Quizplus · Accepted Answer

A security agreement is a contract that allows a business selling an asset on credit to obtain a security interest in that asset, protecting the seller's legal rights in case the buyer fails to pay. The security interest gives the seller the right to seize and sell the asset if the buyer defaults on their payments.

A ________ Is a Contract in Which a Business Selling