1. A proof of claim is not required to be filed by a secured creditor.
2. True
3. False

QUESTION 22

1. Which of the following is true about the distinction between secured and unsecured credit?
2. Secured debt is debt that has already been paid, and unsecured has not yet been paid.
3. Secured debt is expected to be collected, whereas collection of unsecured debt is doubtful.
4. Secured debt will be collected over more than one year whereas unsecured debt is expected to be collected within one year.
5. Secured debt has collateral associated with it, whereas unsecured debt has no associated collateral.

QUESTION 23

1. Article 9 of the UCC does not cover a security interest in the following:
2. Land.
3. Inventory.
4. Equipment.
5. Patents and copyrights.

QUESTION 24

1. Bankruptcy proceedings are commenced under:
2. State law.
3. Federal law.
4. Local (city or county) law.
5. State or federal law at the option of the debtor.

QUESTION 25

1. Sole proprietorships are the most common form of business organization in the United States.
2. True
3. False

QUESTION 26

1. The right to participate in the management of the business is evidence of a partnership.
2. True
3. False

QUESTION 27

1. In an LLC, all owners have limited liability.
2. True
3. False

QUESTION 28

1. The major disadvantage of a sole proprietorship is:
2. The difficulty and cost of formation.
3. The unlimited liability for the business's debts.
4. The sharing of management authority with others.
5. The difficulty in transferring ownership to others.

QUESTION 29

1. Which of the following best describes the requirements of a partnership?
2. An association of persons, owning property, sharing gross receipts
3. An association of persons, owning a business in order to make a profit
4. An association of persons, owning property in order to make a profit
5. An association of persons

QUESTION 30

1. Which types of partners in a limited partnership should participate in management?
2. General partners only.
3. Limited partners only.
4. Both general and limited partners.
5. General partners only, unless there are no general partners, and in that case, limited partners participate in management.