Great State Bank Took a Security Interest in Gresham,Inc

question 12

Multiple Choice

Great State Bank took a security interest in Gresham,Inc.'s meat processing equipment.Gresham defaulted on the loan.Which statement is correct?

• A) Great State Bank may take possession of the collateral.
• B) Great State Bank may ignore its rights in the collateral and sue Gresham for the money owed.
• C) Both a and b are courses of action that Great State Bank may follow.
• D) Neither a nor b are courses of action that Great State Bank may follow.

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Definitions:

Sole Proprietorship

A business structure in which a single individual owns and operates the business, bearing sole responsibility for its debts and obligations.

Corporation

A legal entity owned by stockholders whose liability is limited to the value of their stock ownership.

Partnership

A firm with multiple owners who share the profits and bear unlimited liability for the firm’s losses and debts.

Industrial Revolution

Development of large-scale factory production that began in Great Britain around 1750 and spread to the rest of Europe, North America, and Australia.