Rollo's Super Store sells goods to consumers and businesses in a rural county in the Midwest.Most of the goods are sold on credit.Rollo's often takes a security interest with the goods as collateral.Classification of the collateral determines

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The classification of collateral determines when or how to perfect a security interest, meaning how to legally establish a creditor's claim to the collateral in case of default or bankruptcy. This determines the priority of the creditor's claim over other creditors and affects the effective time duration of credit, but not the terms of a sale, which depend on negotiations between the parties.

Rollo's Super Store Sells Goods to Consumers and Businesses in a Rural