[Burningboy]

I get it. Now I have a feeling of these concepts. As it is beyond the Paper FA, I will not spend much time on it.

Thank you very much!

[Burningboy]

Thank you!

I have a following question.

About the “Security for loans”, on page 8 the textbook explains more about it.

It gives a new terminology named ” floating charges”. It’s useful when a limited liability company has no non-current assets but does have large and valuable inventories.

Does that mean a company can also use its own inventories as mortgage to repay for the loan? If so, how can we operate it? I think it’s not acceptable in general because the lender shouldn’t want to spend time and find a way of resaling the goods.

[Burningboy]

Okay, I get it. The textbook maybe better to be regarded as supplement for the OT resources, thank you!

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