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      Question

      Which of the following is a 'Primary Security' for a

      working capital loan?Β 
      A Land and Building Correct Answer Incorrect Answer
      B Stocks and Debtors Correct Answer Incorrect Answer
      C Personal Guarantee of Directors Correct Answer Incorrect Answer
      D Fixed Deposit of the Promoter Correct Answer Incorrect Answer
      E Plant and Machinery Correct Answer Incorrect Answer

      Solution

      Primary security is the asset created out of the loan funds (e.g., stocks/receivables for working capital). Land or buildings are usually 'Collateral' securities.

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