Accounting
Anthropology
Archaeology
Art History
Banking
Biology & Life Science
Business
Business Communication
Business Development
Business Ethics
Business Law
Chemistry
Communication
Computer Science
Counseling
Criminal Law
Curriculum & Instruction
Design
Earth Science
Economic
Education
Engineering
Finance
History & Theory
Humanities
Human Resource
International Business
Investments & Securities
Journalism
Law
Management
Marketing
Medicine
Medicine & Health Science
Nursing
Philosophy
Physic
Psychology
Real Estate
Science
Social Science
Sociology
Special Education
Speech
Visual Arts
Question
Fact Pattern 20-1General Leasing Company (GLC) buys equipment for use as inventory, borrowÂing $1 million from Helpful Finance Corporation for a security inÂterest in the equipment. The next day, GLC borrows $500,000 from Interstate Bank, also for a security interest in the equipment. GLC defaults on the loans.
Refer to Fact Pattern 20-1. Suppose that Helpful perfects its seÂcurity inÂterÂest when GLC takes possession of the equipment. In that cirÂcumÂstance, the party with priÂority to the collateral on GLC's default would be
a. GLC.
b. Helpful and Interstate proportionately.
c. Helpful only.
d. Interstate only.
Answer
This answer is hidden. It contains 1 characters.
Related questions
Q:
Flo-Thru Corporation is poised to issue securities that, under the Securities Act of 1933, are "exempt." This means that the securities can be sold
a. on the basis of a material omission or misrepresentation.
b. on the basis of nonpublic information.
c. within any six-month period by certain insiders.
d. without being registered.
Q:
Olive Grove Enterprises, Inc., completes its registration process and issues a free-writing prospectus. This tells proÂspective investors
a. about investing freely.
b. how to write their own prospectus.
c. that they can "freely write their own ticket" to buy Olive's securities.
d. that they may obtain the prospectus at the SEC's Web site.
Q:
RingTone Corporation is a public company whose securities are traded among investors. Under the Securities Act of 1933, a security is
a. almost any stake in the ownership or debt of a company.
b. an investment that is guaranteed to make a profit.
c. only such common forms of debt and equity as bonds and stocks.
d. whatever a company represents to the public as a security.
Q:
Corporate governance can be defined as the relationship between a corporation and its directors.
Q:
A corporation whose security does not qualify for an exemption can avoid the cost and complexity associated with registration.
Q:
Natalie is a shareholder of Off-Road Vehicle Company. As a shareÂholder, Natalie does not have
a. a right to compensation.
b. dividend rights.
c. inspection rights.
d. preemptive rights.
Q:
Ida, Jerzy, and Kit are the directors of Liberty Convenience Stores, Inc. Liberty has nine officers and forty-six shareholders. Dividends are ordered by the firm's
a. board of directors.
b. incorporators.
c. officers.
d. shareholders.
Q:
Because stock is intangible personal property, a stockholder's ownership of the stock
a. exists independently of the stock certificate itself.
b. cannot exist without a tangible stock certificate.
c. cannot exist without the original stock certificate.
d. cannot be transferred to another person.
Q:
Niche Stores, Inc., must hold a shareholder' meeting
a. once a month.
b. once a year.
c. once every two years.
d. only when it is called by the board of directors.
Q:
Rafi, a director of Super Service Station Corporation, does not attend a board meetÂing for three years. During that time, Twyla, Super's president, makes improper loans that cost the company $100,000. Rafi is most likely
a. liable for negligence or mismanagement.
b. liable for violation of the business judgment rule.
c. not liable because missing meetings is an honest mistake.
d. not liable because missing meetings is only poor judgment.
Q:
Frawsty Corporation distributes beverages in the greater Northwest. Frawsty's board of directors can delegate some of its functions to
a. Frawsty's incorporators.
b. Frawsty's officers.
c. Frawsty's shareholders.
d. no one.
Q:
RayAnn is a corporate officer for Timmy's Trees, Inc. As a corporate officer, RayAnn is
a. the head of the board of directors.
b. involved in the day-to-day operations of Timmy's Trees.
c. not involved in the day-to-day operations of Timmy's Trees.
d. in charge of selecting members of the board of directors.
Q:
Philip is elected as a director for Fatless Foods, Inc. His term of office will most probably last for
a. three months.
b. six months.
c. nine months.
d. one year.
Q:
If the corporate directors fail to sue in the corporate name to redress a wrong suffered by the corporation, then the shareholders can do nothing.
Q:
The ownership right to stock exists independently of a stock certificate.
Q:
Shareholders own a corporation.
Q:
Directors can use corporate funds and confidential information for personal advantage as long as they disclose that they are doing so.
Q:
A corporate officer cannot act as an agent of the corporation.
Q:
After the first board, the directors are chosen by the corporate officers.
Q:
A director usually serves on a corporation's board for a life term.
Q:
Generally, an accountant must exercise the degree of care that an ordinarily prudent accountant would exercise.
Q:
Milo buys an all-terrain-vehicle (ATV) from No-Limit Toys, Inc., on credit but makes no payments on the account. Odell, the owner of No-Limit Toys, calls Milo at home on a Monday morning at three a.m. Odell represents himself as PayNow Collection Agency and demands payment "or else." The next day, Odell sends Milo notice that he has thirty days in which to request verification of the debt and that its payment will be suspended during that time, but that if he does not pay the full amount due within five business days, Odell will arrange for the "destruction of Milo's good credit rating." Which laws has Odell violated, if any, and in what ways?
Q:
Without a permit from the U.S. Army Corps of Engineers, Holiday Timeshares, Inc., fills a wetlands area that it owns before constructing a residential resort. Under the Clean Water Act, this is most likely
a. a violation.
b. not a violation because a permit is not needed to fill wetlands.
c. not a violation because the area was filled before construction.
d. not a violation because there was no discharge of pollution.
Q:
Metal Smelting, Inc., operates a planta "major source"that emits hazardous air pollutants for which the Environmental Protection Agency has set maximum levels of emission. The plant does not use any equipment to reduce its emissions. Under the Clean Air Act, this is most likely
a. a violation.
b. not a violation because a "major source" is exempt.
c. not a violation because the plant does not use any equipment.
d. not a violation because the plant is not a mobile source.
Q:
The courts have considerably scaled back the Clean Water Act's protection of wetlands.
Q:
Any point source emitting pollutants into water must have a permit.
Q:
A collection agency must include a validation notice whenever it initially contacts a debtor for payment of a debt.
Q:
Major credit reporting agencies must provide consumers with free copies of their own credit reports every twelve months.
Q:
A credit-card company is not required to provide advance notice to consumers before changing credit-card terms.
Q:
Labels on vegetables and fruits are not required to indicate where the food originated.