Maria is the sole proprietor of an antique store that she has operated at the same location for the past 16 years.The store rents the space in which it is located but does own all of the inventory and fixtures.The store has an outstanding loan with the local bank but no other debt obligations.There are no specific loan covenants or assets pledged as security for the loan.Due to a sudden and unexpected downturn in the economy,the store is unable to generate sufficient funds to pay the loan payments due to the bank.Which of the following options does the bank have to collect the money it is owed?
I.Sell the inventory and use the cash raised to apply to the debt
II.Sell the store fixtures and use the cash raised to apply to the debt
III.Take funds from Maria's personal account at the bank to pay the store's debt
IV.Sell any assets Maria personally owns and apply the proceeds to the store's debt
A) I only
B) III only
C) I and II only
D) I, II, and III only
E) I, II, III, and IV
Correct Answer:
Verified
Q26: The goal of financial management is to
Q29: Which one of the following statements about
Q34: The primary goal of financial management is
Q35: A limited liability company:
A)is a hybrid between
Q38: A corporation:
A)is ultimately controlled by its board
Q39: A sole proprietorship:
A)provides limited liability for its
Q40: Corporate shareholders:
A)are proportionately liable for the firm's
Q41: Which one of the following parties can
Q42: Which one of the following statements is
Q43: Give an example of a situation where
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents