1. of the company president. settlement of prior year's litigation against the company at no cost. issuance of a significant number of shares of preferred stock. of 10% of the company's assets. prolonged employee strike. a significant customer. of fraud filed against a vice-president. for protection under chapter 11 of the bankruptcy code. acquisition of another company with sales of approximately one-half of the company. of an overseas plant due to expropriation.

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan

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