Which of the Following Is True of an Assignment of a Right

question 21

Multiple Choice

Which of the following is true of an assignment of a right?

• A) The unconditional assignment of a contract right retains all the assignor's rights.
• B) The obligor is entitled to performance from the assignor.
• C) The assignor loses the right to sue the obligor directly for nonperformance in an unconditional assignment.
• D) The obligor cannot raise personal defenses against the assignee.

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Definitions:

Consolidated Balance Sheet

A financial statement that aggregates the assets, liabilities, and equity of a parent company and its subsidiaries into one document.

Goodwill

An intangible asset that arises when a buyer acquires an existing business, representing the premium paid over the fair value of its net assets.

Proportionate Consolidation Method

An accounting technique used for combining the financial statements of joint ventures, where the investor's share of each line item is included proportionally.

Non-Controlling Interest (NCI)

A financial interest in a subsidiary attributed to shareholders outside of the controlling shareholder group, reflecting their share of the entity's equity that isn’t controlled by the parent company.