Question
Which of the following best describes a charge created
by a borrower in favor of a secured lender upon any movable property, existing or future, without delivery of possession of the movable property to the lender?Solution
Hypothecation is a financial arrangement where a borrower pledges an asset as collateral for a loan, while retaining possession of the asset. The lender has the right to seize and sell the asset if the borrower defaults on the loan Hypothecation is commonly used in cases like vehicle loans . For example, when a borrower takes out a car loan, the borrower pledges the car as collateral to the bank. The bank keeps the car as security until the loan is paid off. The borrower retains physical possession of the car, but the bank technically "holds" it .
When a borrower opts for an insurance policy in connection with a loan, it is a case of _______
Which of the following most likely increases the wealth of shareholders?
What will be the fixed cost for the year for ABC Ltd is it sells 42500 units at Rs.120 each, and its break-even point is 25% of sales with PV ratio of 2...
What will be the impact on Return on Equity (RoE) if cash is paid to the creditors?
Normal Loss is generally determined as a % of which among the following?
Who can enforce the execution of a trust under the Indian Trusts Act, 1882?
- The negotiable warehouse receipt (NWR) system was launched in which of the following year?
The current PCA Framework was revised in which year?
In a process account, the costs which will be borne by the good production units include _____.
1. Normal loss
2. ...
The cost incurred for an additional product is known as ________