Creditors' Rights and Business Law

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

Anne borrows money from the bank in order to buy a tractor for her farm. In exchange, she gives the bank a legal claim to the tractor. This legal claim is called a:

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1. Celine wants to buy a brand new house and borrows money from the National Commercial Bank. In exchange, she gives the bank a legal claim to the house. What is true about the house?

2. Jack borrows money from his friend Jill in order to buy a laptop. Jill is a:

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About This Quiz & Worksheet

Business law uses particular terms to discuss loans and the rights of creditors, and this quiz/worksheet combo will help you test your understanding of the legal terminology involved in the field. The multiple-choice questions on the quiz will focus on vocabulary.

Quiz & Worksheet Goals

In these assessments, you'll be tested on the definitions and examples of the following terms:

  • Collateral
  • Real creditor
  • Secured debt
  • Unsecured debt
  • Security interest

Skills Practiced

  • Reading comprehension - ensure that you draw the most important information from the related lesson on creditors' rights and business law
  • Interpreting information - verify that you can read information regarding borrowing and lending and interpret it correctly
  • Defining key concepts - ensure that you can accurately define main terms, such as creditor and collateral

Additional Learning

Make sure to review the accompanying lesson, Creditors' Rights and Business Law, for further details. This lesson covers the following objectives:

  • Distinguish between secured and unsecured debt
  • Understand the legal claims available to creditors
  • Know the rights creditors have in case of loan default
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