The Essential Difference Between a Fixed Charge and a Floating

question 55

Multiple Choice

The essential difference between a fixed charge and a floating charge relates to:

• A)Whether or not the charge must be registered.
• B)The length of time the charge exists.
• C)The enforceability of the charge against third parties.
• D)The time when the particular assets that will be subject to the charge become known.

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Definitions:

Promoters

Individuals or companies responsible for establishing a corporation or business venture, including raising capital and completing legal formalities.

Personal Liability

involves an individual's legal responsibility for debts or obligations, potentially affecting personal assets.

Novation

A legal process by which an existing contract or obligation is replaced with a new one, releasing a party from the original agreement.

Model Business Corporation Act

A model set of laws prepared by legal experts to guide states in developing their corporate statutes.