Which of the Following Is True Regarding Any Right to "Cover

question 38

Multiple Choice

Which of the following is true regarding any right to "cover" in regard to a buyer's rights under the UCC?

• A) The UCC does not recognize any concept called a right to cover.
• B) The UCC recognizes that sellers have a right to cover and find substitute buyers in the event of a breach of contract.
• C) The UCC recognizes the right of cover in regard to the right of sellers to cover transactions involving installment sales with financing statements.
• D) The UCC recognizes the right of buyers to cover, or substitute, goods for those due under a sales agreement.
• E) The UCC recognizes the right of sellers to resell goods to other buyers in order to cover contractual obligations.

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Definitions:

Return On Investment

A measure used to evaluate the efficiency or profitability of an investment compared to its cost.

Operating Assets

Resources owned by a business that are used in its day-to-day operations to generate revenue, such as machinery, buildings, and equipment.

Net Operating Income

The profit a company generates from its operations, before taxes and interest, calculated as gross income minus operating expenses.

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment, calculated as net profit divided by the cost of the investment.