Which of the Following Statements Provides the Best Definition or Description

question 65

Multiple Choice

Which of the following statements provides the best definition or description for "the curtain principle"?

• A)A subsequent mortgagee will lose its security if a prior mortgagee forecloses.
• B)The sale of a residential property usually includes anything attached to the house, such as curtain rods and dishwashers.
• C)An interest in land may be obtained through adverse possession if the owner does not use a "window of opportunity" to enforce its rights.
• D)A purchaser of land should conduct a title search to ensure that there are no hidden interests in the property.
• E)There is no need to look behind a certificate of title in order to identify valid interests in land.

---

Definitions:

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and can be easily quantified and allocated to that product.

Break-even Point

The production level at which total revenues equal total expenses, and there is neither profit nor loss.

Contribution Margin Ratio

A financial metric that shows the percentage of sales revenue that exceeds variable costs, contributing to covering fixed costs and generating profit.

Profit-volume Ratio

A measure that indicates the relationship between the profit generated by a business and its sales volume, usually expressed as a percentage.