Which of the following is an example of intangible collateral?

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Multiple Choice

Which of the following is an example of intangible collateral?

Explanation:
Intangible collateral consists of assets that have value but no physical form. Intellectual property fits this category because patents, copyrights, and trademarks are rights that exist without a physical object and can be pledged to secure a loan. Real property is tangible—you can touch it, so it’s not intangible collateral. A negotiable instrument like commercial paper is an instrument, not an intangible asset, and accounts receivable are rights to payment; while they are intangible, the clearest example among typical classifications is intellectual property.

Intangible collateral consists of assets that have value but no physical form. Intellectual property fits this category because patents, copyrights, and trademarks are rights that exist without a physical object and can be pledged to secure a loan. Real property is tangible—you can touch it, so it’s not intangible collateral. A negotiable instrument like commercial paper is an instrument, not an intangible asset, and accounts receivable are rights to payment; while they are intangible, the clearest example among typical classifications is intellectual property.

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