Which type of goods are included in secured property under the definition of inventory?

The definition of inventory in the context of secured property includes goods that are held for sale or lease, as well as works in process. This broad definition recognizes that inventory encompasses not just completed items ready for sale, but also those items that are in production (works in process) and those that are still being prepared for sale or lease.

This expansive conceptualization of inventory aligns with UCC (Uniform Commercial Code) definitions which aim to provide clarity and flexibility in commercial transactions. Goods forming part of an inventory are typically part of a business’s operating cycle; therefore, they can include any items that are intended to be sold or leased in the ordinary course of business.

Other options are more limited or specific in scope. For instance, focusing solely on tangible personal property excludes other forms of inventory that may not neatly fit that definition. Concentrating on farm products or raw materials limits the understanding of inventory to specific sectors or stages in production. Thus, the option that recognizes the broader spectrum of goods categorized as inventory is the most accurate and comprehensive.