Discussion
What do you mean by a floating charge ?
Answer: B
A floating charge is a charge on present and future assets which can be used in the ordinary course of business.
A floating charge is an equitable charge over a class of assets, present and future, that change from time to time, such as stock-in-trade and book debts. Until the charge crystallises, on winding up or default, the company may deal with those assets in the ordinary course of its business without the charge-holder's consent.
Option C contradicts the defining feature, the freedom to use the assets. Options A and D describe fixed assets under a fixed charge, which the company cannot deal with freely.
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