When a State Statute Requires a Security Interest in a Motor

question 51

Multiple Choice

When a state statute requires a security interest in a motor vehicle to be noted on the certificate of title, the security interest is perfected:

• A) by the certificate notation, when a non-inventory motor vehicle is involved.
• B) by filing under the UCC, regardless of how the vehicle is classified.
• C) by filing under the UCC, when the motor vehicle is inventory.
• D) either by the certificate notation or by a UCC filing, depending on how the state statute defines the term motor vehicle.

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Definitions:

High-low Method

A technique used in accounting and finance to estimate variable and fixed components of a cost based on the highest and lowest activity levels.

Cost Analysis

The process of assessing the costs involved in carrying out a particular business activity or project.

Variable Expenses

Costs that vary in direct proportion to changes in the level of activity or volume of production.

Fixed Expenses

Obligations that remain constant in total regardless of changes in business activity levels, such as lease payments and salaries.