Which Statement Is Incorrect Concerning Mortgages

question 49

Multiple Choice

Which statement is incorrect concerning mortgages?

• A) The mortgagee's interest terminates upon performance of the obligation secured by the mortgage.
• B) The mortgagee has the right to enforce the mortgage by foreclosure upon default by the mortgagor.
• C) The mortgagor must have complete or absolute ownership in the property.
• D) Generally, no particular form of language is required to create a mortgage.

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Definitions:

Market Entry

Refers to the process or strategy employed by an organization to start selling its products or services in a new market or industry segment.

Profit Maximization

The technique used by entities to determine the most profitable pricing and output levels.

Long-Run Equilibrium

A state in which all firms in a market or industry are making normal profits, and there is no incentive for existing firms to exit the market or for new firms to enter.

Marginal Cost

The expenditure associated with creating one more unit of a good or service.