Which of the Following Rules Applies to an Equitable Assignment

question 57

Multiple Choice

Which of the following rules applies to an equitable assignment?

• A)The assignment must be written.
• B)The assignment must be placed under seal.
• C)The assignment must be unconditional.
• D)The assignment is valid only once the debtor is given written notice.
• E)The assignee takes the assignor's rights subject to the equities.

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Definitions:

Dividend Payment Capacity

The ability of a company to make dividend payments to its shareholders, often assessed by its free cash flow or earnings.

Non-controlling Interest

A minority share of ownership in a subsidiary that is not owned by the parent company, reflected in consolidated financial statements to show the portion of the subsidiary's earnings not attributed to the parent.

Consolidated Equity

The total equity in a consolidated financial statement, combining the parent company's and its subsidiaries' equity.

Parent Interest

Refers to the portion of equity in a subsidiary attributable directly to the parent company, excluding any minority or non-controlling interests.