A(n) ______Security Interest Is Effective Against Third Persons as Well

question 36

Multiple Choice

A(n) ______security interest is effective against third persons as well as against the buyer.

• A) universal.
• B) prohibitive.
• C) perfected.
• D) protective.

---

Definitions:

Cash Cycle

The period it takes for a business to convert its inventory and other resources into cash flows from sales, effectively measuring the time span between purchasing raw materials and receiving cash from selling the final product.

Receivables Period

The average number of days it takes for a business to collect payments from its credit sales, also known as debtor's collection period.

Inventory Period

The average time it takes for a company to sell its inventory, indicating the efficiency of its sales and inventory management.

Payables Period

The average number of days it takes a company to pay its invoices from suppliers, reflecting the company's credit terms with its suppliers.