Which of the Following Is False Regarding Methods of Perfection

question 57

Multiple Choice

Which of the following is false regarding methods of perfection?

• A) A security interest in a deposit account may be perfected only by taking control of the collateral.
• B) A security interest in a letter-of-credit right may be perfected only by taking control of the collateral.
• C) A security interest in money may be perfected either through possession or through filing a financing statement.
• D) For a limited period, a purchase-money security interest in consumer goods is automatically perfected.

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Definitions:

Relay Division

This term does not specify a widely recognized concept or key term in a general context and may refer to a specific internal department or team within an organization focused on relaying or transferring goods, services, or information.

Variable Expenses

Costs that change in proportion to the activity of a business, such as sales volume or production levels.

Transfer Price

The price at which goods or services are transferred between departments or divisions within the same company, often used for accounting and tax purposes.

Industrial Products Division

A subsection of a company focused on the production and sale of goods used in industrial and commercial applications.