Loan practice question ..

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topcat
topcat Registered Posts: 452
in AAT Level 3 (Level 6 in Scotland)
Have to pick the most suitable option taking into account the bullet points, I think it is option 2 but the answer is option 3 I can not see why after looking for 15 minutes so maybe a fresh pair of eyes will help.

My reasoning behind option 2 is the loan is secured on the capital item where as option 3 is secured on all assets of the partnership.

Option 3 contradicts the third bullet point...
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  • Nps
    Nps Registered Posts: 782
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    I agree. The notes say 'may not', not 'preferably not', so to my mind, option 3 is a non starter even before you get the calculator out.
  • topcat
    topcat Registered Posts: 452
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    Nps1976 wrote: »
    I agree. The notes say 'may not', not 'preferably not', so to my mind, option 3 is a non starter even before you get the calculator out.

    This one may be a mistake by AAT instead of me misunderstanding for once :lol:
  • Nps
    Nps Registered Posts: 782
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    I've always found the AAT stuff to be fairly reliable but on the basis of what you have copied and pasted, I still can't see how that wording can leave option 3 as an option.

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