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Why Is the Unencumbered Status of Assets Considered to Be

Question 67

Multiple Choice

Why is the unencumbered status of assets considered to be a distinguishing characteristic?


A) They are typically worth more than the existing debt.
B) They are typically acquired after giving a security interest.
C) Lenders typically find them most attractive as security.
D) Lenders typically find their portability to be a risk.

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