Which of the Following Is True About Security Agreements and Financing

question 134

Multiple Choice

Which of the following is true about security agreements and financing statements?

• A) These are two terms for essentially the same document.
• B) Both must be filed in order to perfect a security agreement.
• C) Both must exist in order for a security interest to attach.
• D) The financing statement gives constructive notice to the world of the existence of the related security agreement.
• E) The security agreement is unenforceable until a financing statement has been filed.

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Definitions:

Functional Structures

An organizational structure where the company is divided into departments based on specific functions or roles, such as marketing, finance, or human resources, enhancing specialization and efficiency.

Organic

Pertains to living systems or compounds containing carbon, or in business, refers to growth achieved through internal processes.

Formal

Following or conforming to established rules, conventions, or ceremonies.

Regulations

Rules or directives made and maintained by an authority to regulate behavior or achieve compliance.