Which One of the Following Is False with Regard to Creditors

question 41

Multiple Choice

Which one of the following is false with regard to creditors' remedies?

• A) A garnisheeing order is an order to the sheriff or civil enforcement agent to seize assets of a judgment creditor to satisfy a judgment debt.
• B) A person who wins in an action and is awarded damages is called a judgment creditor.
• C) A guarantor is a person who agrees to be responsible for a debt if the borrower (the person primarily liable) defaults.
• D) A General Security Agreement debenture can create a security interest in "all present and after acquired property."
• E) A guarantor may avoid liability if the creditor does some act or enters into an agreement that weakens the guarantor's position.

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Definitions:

Monthly Target Profit

The profit goal set by a business to achieve within a one-month period.

Degree of Operating Leverage

A financial ratio that measures the sensitivity of a company's operating income to its sales, illustrating how revenue growth translates into growth in operating income.

Net Operating Income

A company's revenue minus its operating expenses, excluding tax and interest, representing the profit from core business operations.

Sales Increase

A rise in the amount of products or services sold by a business within a specific period, indicating growth or an uptick in market demand.