A Security Interest That Is Effective Against Third Persons as Well

question 43

Multiple Choice

A security interest that is effective against third persons as well as against the buyer is called a:

• A) universal security interest.
• B) prohibitive security interest.
• C) perfected security interest.
• D) protective security interest.

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Definitions:

Moral Hazard

The risk that one party to a contract can change their behavior to the detriment of another after the contract has been concluded, particularly where one party bears the cost of those actions.

Uncertainty

A state of having limited knowledge where it is impossible to exactly describe existing states or future outcomes.

Incentive Compensation

A form of payment designed to motivate and reward employees for exceeding specific performance goals.

Compensation

Payment or benefits provided to employees in exchange for their labor or services, including salaries, wages, and benefits packages.