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:

Publicly Held Corporation

A company whose shares are traded freely on a stock exchange, allowing public investment and ownership.

Tender Offer

A proposal to buy shares of stock from the shareholders of a corporation for a specific price, usually at a premium above market value.

Raider

An individual or company that aims to take over another company, often by buying a substantial amount of its stock.

Directors' Meeting

A formal gathering of the board of directors of a corporation to discuss and make decisions on company policy and management.