What Are the Duties of the Secured Party When It

question 14

Multiple Choice

What are the duties of the secured party when it is disposing of collateral upon a default.

• A) sell the collateral in a public sale only.
• B) dispose of the collateral in any reasonably manner
• C) no duty of further notice to the defaulting debtor.
• D) all of the above

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Definitions:

Cost Driver

A factor, such as machine-hours, beds occupied, computer time, or flight-hours, that causes overhead costs.

Indirect Materials

Small items of material such as glue and nails that may be an integral part of a finished product, but whose costs cannot be easily or conveniently traced to it.

Machine Hours

A measure of the total time that production equipment is operational, used to allocate machine-related expenses to products.

Cost Behaviour

The characteristic of costs that they either remain stable or change in response to variations in business activity levels.