Generally,if Two Creditors Have Unperfected Security Interests in the Same

question 112

Multiple Choice

Generally,if two creditors have unperfected security interests in the same collateral,which has the superior right in the collateral?

• A) the first to have filed
• B) the first to attach
• C) the first to sue the debtor
• D) the first to repossess the collateral
• E) they have equal priority

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Definitions:

Payback

The method of calculating the duration required to recover the cost of an investment, emphasizing the time it takes to reach a breakeven point.

Annual Cash Flows

The total amount of money being transferred into and out of a business, affecting its liquidity, over a year.

Required Rate

The minimum return that investors expect to earn from an investment, influencing many financial decisions.

Discounted Payback

A capital budgeting method that calculates the time required to recoup the initial investment in present value terms.