The correct answer is: A. Fixed charge.
A fixed charge is a security interest that attaches to specific assets of the borrower, such as land or equipment. The charge is created by a legal document, such as a mortgage or security agreement, and it gives the lender the right to take possession of the assets if the borrower defaults on the loan.
A floating charge is a security interest that attaches to all of the borrower’s assets, both present and future. The charge is created by a legal document, such as a debenture, and it gives the lender the right to take possession of any of the borrower’s assets if the
borrower defaults on the loan.A charge created on the stock in
trade of a business is a fixed charge. This is because the stock in trade is a specific asset of the business. The charge is created by a legal document, such as a security agreement, and it gives the lender the right to take possession of the stock in trade if the business defaults on the loan.Option B is incorrect because a floating charge does not attach to specific assets. Option C is incorrect because a fixed charge and a floating charge are two different types of charges. Option D is incorrect because a charge can be created on multiple assets.