Fast Feet, Inc. (FFI), is a manufacturer of running shoes. FFI gives merchandise on credit to Rick's Running, a small retailer of athletic shoes for distance runners. FFI requires Rick's to sign an agreement that describes the merchandise as collateral and specifies that Rick's will pay FFI weekly based on the sales of the shoes. FFI files a statement of notice with the appropriate government agency. Based on these facts, what kind of creditor is FFI, and why?
What will be an ideal response?
FFI is a secured creditor with a perfected interest. It has a security agreement with Rick's that specifically identifies the collateral and defines the terms of repayment. FFI is perfected because it filed notice of the security agreement with the appropriate government agency as specified by the UCC.
You might also like to view...
One of the most important factors in making debt less expensive than equity is:
A) the tax deductibility of depreciation. B) the tax deductibility of equity. C) the tax deductibility of dividends. D) the tax deductibility of interest.
Which of the following selections does not follow the rules of operator precedence. Assume that the operators on the left are evaluated first
a) multiplication, division, addition b) parentheses, subtraction, modulus c) division, multiplication, addition d) parentheses, modulus, subtraction
The _________ is typically located above the program code and global data and grows up in memory (while the sack grows down toward it)
What will be an ideal response?
Which of the following statements best describe status symbols?
A. They refer to clearly defined and dramatic devices that convey a key element of the firm's culture and vividly reinforce the values of the organization. B. They are a set of assumptions, beliefs, values, and norms shared by an organization's members. C. They are visible external things that attach to a person or workplace and serve as evidence of social rank. D. They are useful in conveying a sense of tradition and enhance cohesion around key values.