Question

Mr. Jones is a successful entrepreneur. He is currently planning a new business venture, but he doesn’t have sufficient funds for the new business. Which strategies indicate that Mr. Jones is using his property rights to obtain credit?
A. selling his penthouse apartment in New York

B. issuing shares for the new company

C. using his family home as collateral for a loan

D. withdrawing money from his certificate of deposit

E. mortgaging his factory building

Answer 1

Answer:

C) using his family home as collateral for a loan

E) mortgaging his factory building

Explanation:

Mr. Jones property rights include his family home and his factory building, and he is taking loans using both of them as collateral.

A: If someone sells a house or an apartment, they transfer their property rights.

B: If his company issues shares, they are not getting a loan, they are increasing their equity.  

D: If someone withdraws money form a CD, they are not getting a loan.