Assuming No Exception Applies,which of the Following Is True Regarding

question 69

Multiple Choice

Assuming no exception applies,which of the following is true regarding the effect of a debtor offering to pay less money than is owed as full payment on a debt for which there is a dispute over the amount of the debt,and the creditor agrees?

• A)A liquidated debt is involved,and there is an accord and satisfaction.
• B)An unliquidated debt is involved,and there is an accord but not satisfaction.
• C)A liquidated debt is involved,and there is an accord but no satisfaction.
• D)A liquidated debt is involved,and there is neither a satisfaction nor an accord.
• E)An unliquidated debt is involved,and there is an accord and satisfaction.

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Definitions:

Primary Market

The financial market where new securities are issued and sold by companies and governments for the first time.

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership such as options or warrants.

Liquidation Market

A marketplace where assets are sold quickly, often at a discount, typically due to a company's insolvency or urgent liquidation needs.

Secondary Market

This is a market where investors purchase securities or assets from other investors, rather than from issuing companies directly.