When the Filing of a Financing Statement Is Defective: ______

question 22

Multiple Choice

When the filing of a financing statement is defective: ______.

• A) the security interest is lost.
• B) the filing fails to perfect the security interest.
• C) the security interest is perfected through the court's application of equitable principles.
• D) the public notice of the creditor's interest is still effective.

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Definitions:

Shares

Units of ownership interest in a company or financial asset that provide for an equal distribution in any profits, if any are declared, in the form of dividends.

Dividends

Dividends are payments made by a corporation to its shareholder members, reflecting a portion of the corporate profits allocated for distribution.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, are subtracted from total revenue.

Revenue

The income received by a company from its business activities, usually from the sale of goods and services to customers.