Question

A(n) ______ is a type of legal claim (lien) against a firm's inventory when it is used as collateral for a loan and the goods are relatively high priced, slow moving, and easy to identify individually using serial numbers or other distinguishing characteristics.
a. note payableb. trust receipt
c. blanket lien
d. bond indenture
e.recourse inventories order

Answer 1

Answer:

The correct answer is C that is blanket lien.

Explanation:

Blanket lien is the lien or claim which provide the right to the creditor a right to seize in the event of non- payment or the default, then all kind of assets which served by debtor as a collateral.

It provides the creditor a legal interest for all of the assets of the debtor. So, the kind of legal claim against the inventory of the firm when it is used a collateral for the loan.