To secure financing for a planned expansion,JamesCo Electronics borrowed $400,000 from King Finance.The______ loan agreement requires that JamesCo Electronics provide the title to their factory as collateral.
A)minority
B)secured
C)recapitalization
D)pledged

Question

Quizplus · Accepted Answer

A secured loan is a loan that is backed by collateral, such as property or inventory, that the lender can seize if the borrower defaults on the loan. In this case, JamesCo Electronics used the title to their factory as collateral to obtain the loan from King Finance.

To Secure Financing for a Planned Expansion,JamesCo Electronics Borrowed $400,000