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    Question

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

    working capital loan?┬а
    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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