Final answer:
A corporate resolution is a formal decision made by a corporation's board of directors or shareholders, while a hypothecation agreement is a collateral arrangement for a loan.
Step-by-step explanation:
A corporate resolution and a hypothecation agreement for corporations are two separate legal documents that serve different purposes.
A corporate resolution is a formal decision made by the board of directors or shareholders of a corporation, usually recorded in writing. It outlines the actions or decisions that the corporation intends to take and provides authorization for those actions. For example, a corporate resolution may be used to approve a major financial transaction or to appoint officers or directors.
A hypothecation agreement is a type of collateral arrangement in which a corporation pledges its assets, such as inventory or accounts receivable, as security for a loan. The agreement allows the lender to take possession of the assets if the corporation fails to repay the loan. It helps protect the lender's interests by providing a source of repayment if the borrower defaults.