Elaine wants to buy and operate an ice-cream truck but doesn’t have the financial resources to start the business. she borrows $10,000 from her friend george, to whom she promises an interest rate of 7 percent, and gets another $20,000 from her friend jerry, to whom she promises a third of her profits. what best describes this situation?
a. george is a stockholder, and elaine is a bondholder.
b. george is a stockholder, and jerry is a bondholder.
c. jerry is a stockholder, and elaine is a bondholder.
d. jerry is a stockholder, and george is a bondholder.

Destablishing a distribution network

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