Most States Accept the UCC's Provisions on Most Topics Because

question 209

Multiple Choice

Most states accept the UCC's provisions on most topics because:

• A) the benefits of lowering the costs of doing business across state lines was so great
• B) the federal government gave them no choice
• C) the European Union required consistency in U.S. sales law to encourage trade
• D) national unity is very important to all states
• E) there were a lot of federal tax breaks associated with accepting the UCC

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Definitions:

Debt

An amount of money borrowed by one party from another, under the condition that it is to be paid back later, often with interest.

Equity

The value of an asset after deducting the total liabilities, or the ownership interest in a company divided among shareholders.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations, calculated as current assets divided by current liabilities.

Positive Covenant

A clause in a loan agreement that requires the borrower to perform certain actions or meet specific conditions.