Corey Loaned Tori $8,000 and Took Back a Note Secured

question 81

Multiple Choice

Corey loaned Tori $8,000 and took back a note secured by Tori's car.If Tori files for bankruptcy when the value of the car is $4,500,what is Corey's status? He has:

• A) a secured claim for $4,500.
• B) an unsecured claim for $8,000.
• C) an unsecured claim for $4,500.
• D) a secured claim for $8,000.

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Definitions:

Merchandising Companies

Businesses that purchase goods in finished form for the purpose of reselling them to customers without further processing.

Resale

Resale refers to the process of selling a previously purchased product, generally used or surplus items, to another buyer.

Financial Accounting

The branch of accounting that is concerned with recording transactions using generally accepted accounting principles (GAAP) for a business or other economic unit and with a periodic preparation of various statements from such records.

Business

An organization in which basic resources (inputs), such as materials and labor, are assembled and processed to provide goods or services (outputs) to customers.