Cornell's Assignment of His Interest in Equity Lending to Financial

question 19

Multiple Choice

Cornell's assignment of his interest in Equity Lending to Financial Consultants Corporation results in

• A)nothing with respect to Cornell or Equity Lending.
• B)the automatic termination of Equity Lending's legal existence.
• C)Cornell's liability for all of Equity Lending's debts.
• D)Cornell's wrongful dissociation and liability for any damages.

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Definitions:

Private Placements

Loans, usually long term in nature, provided directly by a limited number of investors.

Warrants

Financial derivatives that give the holder the right, but not the obligation, to buy or sell a security—most commonly equity—at a predetermined price before a specified date.

Bonds

Fixed income securities that represent a loan from an investor to a borrower, typically corporate or governmental, with terms including the interest rate and repayment date.