First Banc loaned money to Best Batteries for the purchase of its factory. First Banc took a mortgage on the factory and land. Best Batteries, because the price of its lifetime battery was so high, went out of business within 18 months. Best deeded the title to the factory and land back to First Banc. When First Banc sent in a clean-up firm, it discovered that there were old and new batteries
stacked everywhere on the property. First Banc:
A) has no responsibility for cleanup of the batteries.
B) can sell the property and disclaim liability in the purchase contracts and thus pass along the cleanup to the buyer.
C) enjoys a lender's exemption from CERCLA liability.
D) None of the above
C
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Fraud examiners must be able to recognize signals that a journal entry may have been manufactured to conceal a fraud. Which of the following is a common journal entry fraud symptom?
a. Journal entries with documentary support. b. Journal entries that balance. c. Adjustments to receivables or payables that are made monthly. d. Journal entries made near the end of an accounting period
What is the key lesson in Chapter 12's opening scenario on President Barack Obama?
A) Government officials should limit their use of social media. B) The president's cabinet cannot always be relied upon to carry his messages to the public. C) Public figures can do an end run around traditional media and "go direct" to the public. D) Social media can be an important tool in affecting legislation on Capitol Hill.
The cost of goods sold as a percentage of sales is 74% for Fairyway Inc and 82% for Telasis. This means that:
a. Telasis will have greater inventory on total assets. b. Telasis will have greater profits on sale. c. Fairyway will have greater profits on sale. d. Fairyway will have greater inventory on total assets.
The statement of cash flows helps managers answer which of the following questions?
a. Will we have to borrow all the needed cash? b. If borrowing is necessary, can the debt be serviced? c. Can cash be raised by issuing additional capital? d. Can we purchase another company using available cash? e. All of the answers are correct.