Which of the Following Statements Is Incorrect

question 25

Multiple Choice

Which of the following statements is incorrect?

• A)A floating charge relates only to a class or classes of assets
• B)A fixed charge relates to one or more specific assets such as a block of land
• C)A floating charge crystallises in the event of a specified breach in the loan agreement
• D)The lender who holds a floating charge has superior claim over assets compared with any other lender.

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Definitions:

Specialized Roles

Positions or jobs within an organization that require a specific set of skills or expertise, contributing to more efficient and effective performance.

Social Loafing

The phenomenon where individuals exert less effort when working in a group than when working alone.

Individual Performance

The measurement of work output or results achieved by a single person, often evaluated against predetermined standards or objectives.

Free Rider Effect

Occurs when individuals benefit from resources, goods, or services without contributing to the cost or effort.