Which of the Following Statements Is True Regarding a Secured

question 42

Multiple Choice

Which of the following statements is true regarding a secured creditor's disposition of the collateral after the debtor's default?

• A)The debtor cannot redeem the collateral after his default.
• B)The collateral must be disposed of by private sale.
• C)The creditor may opt not to repossess the collateral and instead sue the debtor on his underlying obligation.
• D)If the proceeds realized from the sale of the collateral exceed the various expenses that must be satisfied from those proceeds,the surplus goes to the creditor.

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Definitions:

Lawn-mowing

The action of cutting the grass in a yard or garden using a lawn mower, often considered a routine maintenance task or a service industry.

Variable Costs

Expenses that change in proportion to the activity of a business such as costs for raw materials or production labor.

Snow-clearing

The process of removing snow and ice from outdoor surfaces, primarily roads and pavements, to ensure safe passage for vehicles and pedestrians.

Perfectly Competitive

A market structure characterized by a large number of small firms, identical products sold by all firms, no barriers to entry or exit, and perfect information among buyers and sellers.