If a Breach of the Peace Might Occur

question 16

Multiple Choice

If a breach of the peace might occur:

• A) self-help repossession is the only option available to obtain the collateral.
• B) the creditor must use court action to obtain the collateral.
• C) the creditor is barred from repossessing the collateral.
• D) the collateral reverts to the debtor.

---

Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets.

Debt-to-Equity

Debt-to-Equity is a financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets.

Receivable Turnover Ratio

A financial metric used to measure how efficiently a company uses its assets by calculating how many times a company can turn its accounts receivable into cash within a period.

Inventory Turnover Ratio

The inventory turnover ratio measures how many times a company's inventory is sold and replaced over a period.