Which of the Following Is True of the Priority of Claims

question 41

Multiple Choice

Which of the following is true of the priority of claims?

• A) If two or more secured parties claim an interest in the same collateral but only one has perfected his or her security interest, the perfected security interest has priority.
• B) Although one of the parties to claim an interest in the collateral has perfected his or her security interest, all the parties are given fair and equal priority.
• C) If two or more secured parties claim an interest in the same collateral but neither has a perfected claim, they are given equal priority irrespective of attachments.
• D) If two or more secured parties claim an interest in the same collateral but neither has a perfected claim, the first to claim has priority.

---

Definitions:

Long Run

A period of time in economics during which all inputs, including capital and labor, can be adjusted, and all markets are in equilibrium.

Shutdown Point

A situation in microeconomics where a firm's revenue is equal to its variable costs, indicating it would incur losses by continuing production.

Firm's Output

The overall amount of products or services generated by a company over a specific timeframe.

Short Run

A period in economics during which the quantities of one or more production inputs cannot be changed, making some costs fixed.