A source of business financing which involves pledging of a specific assets is?

A source of business financing which involves pledging of a specific assets is?

  • A.
    bond
  • B.
    mortage
  • C.
    debentures
  • D.
    loan
Correct Answer: Option B
Explanation

A mortgage is a loan in which property or real estate is used as collateral. The borrower enters into an agreement with the lender (usually a bank) wherein the borrower receives cash upfront then makes payments over a set time span until he pays back the lender in full.

You May Also Like