Asked by Lourdes Orellana on Apr 24, 2024
Verified
John receives certain goods from Tom.He promises to pay Tom later.This transaction is based on a(n) ________.
A) deed of trust
B) unsecured credit
C) mortgage
D) subrogation
Unsecured Credit
A type of credit not backed by collateral, where the lender relies on the borrower's creditworthiness rather than securing assets.
Goods
Items or merchandise that are manufactured or produced for sale.
- Distinguish between secured and unsecured credit types.
- Identify the types and features of contractual security devices.
Verified Answer
MN
Mahnoor NadeemMay 02, 2024
Final Answer :
B
Explanation :
Many common transactions are based on unsecured credit.For example,a retailer buys merchandise or a manufacturer buys raw materials,promising to pay for the merchandise or materials within 30 days after receipt.
Learning Objectives
- Distinguish between secured and unsecured credit types.
- Identify the types and features of contractual security devices.
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