First Principles of Business Law

Business organisations in Australia

7. Companies

Question 14. What is a 'secured' transaction?

 

 

 

Read the statements below and select the best one.

(a) A transaction is said to be 'secured' if the creditor is given some additional legal rights which put that creditor in a position of advantage should the debtor have insufficient funds to pay all its debts.

(b) A transaction is described as 'secured' if the debtor (eg the company who owes money) has sufficient assets to pay all its debts.

 

 

 

 

 

 

 

 

 

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