ImaBigBank Has Extended an Operating Line of Credit to Vandenbergers

question 62

Multiple Choice

ImaBigBank has extended an operating line of credit to Vandenbergers Bulbs Ltd. In exchange, Vandenbergers had to provide an assignment of the corporation's accounts receivable from its seasonal city garden contracts. What is the bank's position?

• A) It acquired ownership of the right to collect the assigned accounts.
• B) It alone possesses the right to collect Vandenbergers' accounts.
• C) It is using a very uneconomical method of protecting creditor rights to pledged property.
• D) It acquired possession of an assignment without obtaining right of ownership.

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Definitions:

Compliance

Conformity to a social norm prompted by the desire to acquire rewards or avoid punishment.

Organizational Norms

The informal understandings that govern the behavior of members within an organization, establishing the expected standards of conduct.

Patriotic Soldier

A military personnel who deeply loves, supports, and defends their country with a strong sense of national loyalty and pride.

Internalization

Conformity to a social norm prompted by true acceptance of the beliefs, values, and attitudes that underlie the norm.