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?

Answer 1

using his family home as collateral for a loan

mortgaging his factory building

Step-by-step explanation:

Using your property rights to obtain credit is basically declaring to the bank that if you fail to pay back the loan that they are giving you they can take the property that you put as collateral in payment, in this case Mr. Jones has two properties the factory building and his family home, either of those two can serve as collateral when going to the bank to ask for a loan.