Exam3(Part 3).Mr. - BUS100ExamNo.3Part3 1., collateral.Why?...

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BUS 100 Exam No. 3 Part 3  1. When banks make business loans, they usually ask for security in the form of  collateral. Why? In your response you must explain first what collaterall is and  then provide examples of three different types of collateral. A bank won't suddenly loan you money unless it thinks that your business can  generate sufficient funds to pay it back. Often, however, the bank takes an added  precaution by asking you for security - business or personal assets, called  collateral, that you pledge in order to guarantee repayment, it is a specific  business or personal assets that a bank accepts as security for a loan. You may have to secure the loan with company assets, such as inventory or  accounts receivable, or even with personal assets. If you don't pay the loan when it's due, the bank can take possession of the  collateral, sell it, and keep the proceeds to coer the loan. If you don't have to put up collateral, you're getting an unsecured loan, but  because of the inherent risk entailed by new business centures, banks don't often  make such loans. Question 2    5 points      Save       Compare international licensing with international contract manufacturing  (also known as outsourcing). Now identify and explain in detail at least three  additional ways in which companies might exploit international business  opportunities. An international licensing agreement allows a foreign company to sell the 
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Exam3(Part 3).Mr. - BUS100ExamNo.3Part3 1., collateral.Why?...

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