What Are Free Assets

question 41

Multiple Choice

What are free assets?

• A) assets for which net realizable value is greater than historical cost.
• B) assets for which no market exists.
• C) assets for which replacement cost is greater than historical cost.
• D) assets available to be distributed for liabilities with priority and for other unsecured obligations.
• E) assets available to be distributed to stockholders.

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Definitions:

Immune

Having protection or resistance against a specific disease, condition, or legal liability.

Multinational Enterprise

A company that owns or controls production or service facilities in one or more countries other than its home country.

National Borders

The defined lines that distinguish the geographic boundaries of sovereign nations.

Force Majeure Clause

A contractual provision that relieves the parties from fulfilling their obligations when certain circumstances beyond their control occur, making performance inadvisable, commercially impracticable, illegal, or impossible.