Barbara Owes Arthur $2,000

question 44

Multiple Choice

Barbara owes Arthur $2,000. On July 1, Arthur assigns the right to the $2,000 to Caleb. Thereafter, on July 15, Arthur assigns the same right to David, who in good faith gives value for it and knows nothing about the first assignee. In this case:

• A) Caleb has the right to the payment of $2,000.
• B) David has the right to the $2,000.
• C) neither Caleb nor David can claim the $2,000.
• D) The rule differs by state.

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Definitions:

Sales Revenues

The total amount of money generated from sales of goods or services by a company before any expenses are deducted.

Net Profit

The amount of money a company retains after deducting all its expenses, interest, taxes, and costs from its total revenue.

Seasonal/Cyclical Business

A company whose performance or sales are influenced by seasonal trends or economic cycles.

Adequate Cash Flow

The level of cash generation by a business that is sufficient to cover its operational expenses and financial obligations.