Which of the following best describes the agreement where all of a firm's inventory is used to secure a loan?

Question

Quizplus · Accepted Answer

The agreement where all of a firm's inventory is used to secure a loan is called a floating lien. A floating lien allows the lender to seize and sell any assets that fall under the category of inventory, including raw materials, work-in-process, and finished goods, if the borrower defaults on the loan.

Which of the Following Best Describes the Agreement Where All