Tom, Lucinda, and Hye Are Friends of Ali and Make

question 4

Multiple Choice

Tom, Lucinda, and Hye are friends of Ali and make various loans to him so that he can run his falafel- making business. The business requires cash as well as equipment to run. Tom has loaned Ali a stove worth $3000 which, under the terms of the loan agreement, Ali has pledged to return to Tom whenever Tom requests. Lucinda has loaned Ali $3000 in cash, and Hye has given Ali 100 kilograms of sesame seeds worth $1000. Ali's obligations to Lucinda and Hye is simply to repay them when he can. In the event of Ali's bankruptcy, which of the following statements is TRUE?

• A) Tom is considered a secured creditor, but Lucinda and Hye are not.
• B) Tom is considered an unsecured creditor, but Lucinda or Hye are not.
• C) The claims of Lucinda and Hye have priority over Tom's.
• D) Tom is automatically considered an unsecured creditor, but so are Lucinda and Hye.
• E) Tom is a preferred unsecured creditor compared to Lucinda and Hye because he advanced credit first.

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Definitions:

Hypothalamic Activity

Pertains to the actions or functions of the hypothalamus, a small region of the brain that regulates many bodily functions including hunger, thirst, and temperature.

Dieting

The practice of eating in a regulated and supervised manner to achieve or maintain a controlled weight or health objective.

Body Image

A person's perceptions, thoughts, and feelings about their body and physical appearance.

Photo Manipulation

The act of altering images using various techniques and software to change or enhance their appearance for artistic or deceptive purposes.