Linda Assigns to Ben a Right to Receive Rent Payments

question 43

Multiple Choice

Linda assigns to Ben a right to receive rent payments.The law implies the following warranty on Linda's part:

• A) the tenant is solvent.
• B) Linda actually has a right to the rental payments.
• C) the tenant will actually pay.
• D) No warranties are implied by law in an assignment.

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Definitions:

Total Assets Turnover Ratio

A measure of a firm's efficiency in using its assets to generate sales, calculated by dividing sales by total assets.

Sales

Sales encompass the transactions where goods or services are exchanged for money, representing the revenue generated by a business.

Total Assets

Total assets represent the sum of all assets owned by a company, including both current and non-current assets.

ROE

A financial ratio expressing the profitability of a firm in relation to stockholders' equity, used to assess how efficiently a company uses investments to generate profit.