Tomas Was a Manager at a Company That Produced Household

question 33

Multiple Choice

Tomas was a manager at a company that produced household appliances. He had many innovative ideas to increase profits. However, his ideas were not received well by the company. So, he left the company to pursue his own business, thus creating a(n)

• A) entrepreneurial venture.
• B) spin-off.
• C) franchise.
• D) merger.
• E) angel investment.

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Definitions:

Perfected

In legal and financial contexts, refers to having completed all necessary legal steps to enforce rights regarding a security interest against third parties.

Proceeds

The total amount of money or assets derived from a transaction, such as the sale of goods, property, or a business activity.

Collateral

An asset pledged as security for the repayment of a loan, forfeitable in the event of a default.

Financing Statement

A document filed to give public notice that a creditor has a security interest in the debtor's collateral, used in securing transactions.