All of the following goods represent appropriate collateral for a secured loan to a candymanufacturer except
A) cream.
B) individually wrapped chocolates.
C) cocoa beans.
D) boxes.

Question

Quizplus · Accepted Answer

Cream is a perishable good and therefore would not be an appropriate collateral for a secured loan as it would have a limited shelf life and could potentially spoil or decrease in value before the loan is repaid. Individually wrapped chocolates, cocoa beans, and boxes are all appropriate collateral for a candy manufacturer as they are non-perishable goods that retain their value over time.

All of the Following Goods Represent Appropriate Collateral for a Secured