Comment of the following statement: "A senior secured creditor has little risk of realizing a loss if the issuer goes into bankruptcy."
What will be an ideal response?
When a company goes bankrupt there are varying degrees of risk for all creditors. Even though the risk can be "little" or small relatively speaking compared to junior unsecured claimants, there is still some risk for senior secured creditors. This is because seniority does not always insure that payments owed will be made for the following reasons. First, the assets of the bankrupt firm may not provide sufficient payments even for senior secured creditors who must compete with other entities including the IRS and unpaid employees. Second, the seniority ranking can be at least partially overturned so that junior claimants receive some payments at the expense of more senior claimants. In conclusion, it is important to recognize that the superior legal status of any debt obligation will not prevent creditors from suffering financial loss when the issuer's ability to generate cash flow adequate to pay its obligations is seriously eroded.
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Gary and Mary are siblings involved in a legal tangle over who gets possession of their ancestral home. Gary threatens to kill Mary's husband if she does not sign papers declaring Gary's sole ownership of their home. This is an instance of ________
A) scienter B) battery C) undue influence D) duress
While in his sales presentation, Lucas encountered an objection from the customer before finishing his presentation. Lucas responded by telling the customer that he would address his point in a few minutes and continued on with his presentation. This technique for overcoming objections is called ________.
Fill in the blank(s) with the appropriate word(s).
A larger sample size is required when the job being studied is shorter in average duration
Indicate whether the statement is true or false
Of the following statements:
I. "A" items usually account for about 70%?80% of the total usage value. II. about 50% of the items usually account for 50% of the value. III. "C" items should be given the top priority in inventory management. A) II and III are true. B) I and III are true. C) Only III is true. D) Only I is true. E) I and II are true.