Which of the Following Statements Is FALSE? a Receiver

question 14

Multiple Choice

Which of the following statements is FALSE? A receiver

• A)has the power to run the business
• B)can take control of a company's assets and sell them off
• C)does not have to be appointed by a court
• D)that sells assets must try to get a reasonable commercial value for them
• E)can get its power under the terms of a general security agreement

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Definitions:

Perpetual Inventory System

An inventory management method where stock levels are updated in real-time with every sale or purchase.

Merchandise

Goods that are bought and sold as part of business operations, typically in a retail or wholesale setting.

Credit

Credit refers to the ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.

Return of Merchandise

This is when customers return purchased goods to the seller, usually due to defects, dissatisfaction, or the desire for an exchange or refund.