Equipment as collateral is characterized by which of the following?

Equipment as collateral refers to tangible assets that a debtor uses in their business operations but are not specifically held for sale in the ordinary course of business. This distinction is crucial in secured transactions because it identifies the type of collateral involved and the rights of the secured party. Tangible items not held for sale are essential for a business's function, such as machinery or tools, and can be used to secure a loan.

In contrast, items intended for sale are classified as inventory, which is treated differently in secured transactions. Perishable items are a more specific category within inventory and do not generally fall under the broader definition of equipment. Lastly, items purchased for consumer use refer to consumer goods, which are typically for personal use rather than for business operations and do not fit the definition of equipment in a commercial context. Thus, the characterization of equipment as tangible items not held for sale accurately reflects its role and legal implications in secured transactions.