By What Method Should an Option to Purchase Be Protected

question 5

Multiple Choice

By what method should an option to purchase be protected in order to ensure priority against a purchaser for value?

• A) Registration under a separate title
• B) Options to purchase will always be overriding interests
• C) Entry of a notice

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Definitions:

Shareholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing the net assets held by shareholders.

General Journal

A general journal is an accounting ledger that is used to record all transactions of a business in chronological order, prior to their transfer into specific accounts in the general ledger.

General Ledger

A comprehensive accounting record of a company’s financial transactions over its life, encompassing all accounts.