Ludmilla and Sudash Formed ICING Inc, a Caterer That Specializes

question 48

Multiple Choice

Ludmilla and Sudash formed ICING Inc, a caterer that specializes in frozen desserts and elaborate ice sculptures used for centerpieces.The corporation purchased a refrigerated truck with the help of a loan from Bank X.The bank took a security interest in the truck to secure the full amount of the loan, which was $70 000.Unknown to the bank, however, the truck was worth substantially more than the value of the loan.If ICING goes bankrupt and the Bank X seizes and sells the truck for $80 000, the bank will

• A)be allowed to retain the entire proceeds of the sale, $80 000.
• B)not be allowed to retain the $80 000 proceeds from the sale of the truck.Any value beyond $70 000 will have to be paid into the bankrupt's estate for distribution to other creditors.
• C)have to share the $80 000 proceeds from the sale of the truck with ICING's other creditors, whether secured or unsecured.
• D)have to share the $80 000 proceeds from the sale of the truck with other secured creditors on a pro rata basis.
• E)be able to keep only a portion of the $80 000 proceeds from the sale of the truck and sue ICING Inc for any deficiency.

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Definitions:

Self-report Measure

A type of psychological assessment where individuals provide subjective reports on their own thoughts, feelings, behaviors, and perceptions, commonly used in surveys and questionnaires.

Personality Psychology

The study of individual differences in characteristic patterns of thinking, feeling, and behaving.

Descriptive Statistics

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