Which of the Following Will Probably Not Be a Result

question 8

Multiple Choice

Which of the following will probably not be a result if a company's liquidity is poor?

• A)Workers will quit if they are not paid on time.
• B)Debt and/or equity will exceed the company's maximum allowed amount.
• C)Banks may not loan the company funds.
• D)Customers will seek other sources of goods when the company's product is not available.

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Definitions:

Statutory Assignment

An assignment of rights that an assignee may enforce if certain conditions are met by the assignment.

Equitable Assignment

An assignment that could be enforced if all parties could be brought before the court.

Constructive Trust

An equitable remedy that imposes a trust-like obligation on someone who has wrongfully obtained or holds legal property rights.

Full Release

A legal agreement in which one party permanently relinquishes all claims against another.