problem 1: When the bank provides services like financial advice to your business, it is required to:
a. Provide account information and maintain secrecy of your affairs.
b. Maintain secrecy of your affairs and provide safeguards for electronic communications.
c. Provide a duty of care and skill and disclose potential conflicts of interest.
d. All of the above.
problem 2: Which of these is a distinguishing feature of a negotiable instrument?
a. Notice of any assignment has to be given to the original promisor.
b. An innocent party who acquires possession of a negotiable instrument has the right to collect on it, even when original contractual obligations have not been met.
c. A holder may sue only if all remaining parties join in the suit.
d. None of the above.
problem 3: This type of security interest gives a creditor the right to sell all of the debtor’s assets:
a. Chattel mortgage
b. Conditional sale
c. General security agreement
d. All of the above
problem 4: Which of these persons is bankrupt?
a. Owes more than $1,000 and cannot meet obligations as they become due.
b. Owes more than $1,000 and has debts which exceed the realizable value of his or her assets.
c. Owes more than $1,000 and has performed any of ten specific acts within the preceding six months.
d. Owes more than $1,000, has performed any of ten specific acts, and has had a petition filed with the courts against him or her by creditors.
problem 5: When bankruptcy occurs, which of these has first priority?
a. Secured creditors
b. Preferred creditors
c. General unsecured creditors
d. Employees owed wages