Which of the Following Elements Must Exist for There to Be

question 37

Multiple Choice

Which of the following elements must exist for there to be a valid,enforceable security agreement?

• A) a written security agreement
• B) the creditor must give value to the debtor
• C) the debtor must have an interest in the collateral
• D) A,B,and C
• E) B and C only

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Definitions:

Merchandising Business

A type of business that purchases goods for resale to customers, making profits from the markup over the cost of goods sold.

Limited Liability Company

An organizational form blending the direct tax system of a sole proprietorship or partnership with the reduced liability features of a corporation.

Cost Concept

An accounting principle that states all assets and services purchased by a company should be recorded at their cost price.

Market Value

The present rate at which a service or asset may be purchased or sold in the market.