Unsecured creditors: have rights to be paid amounts owed, but the rights may have to be enforced through the courts face significant risk, and accordingly unsecured credit is very unusual have no rights in the event that the debtor defaults

Unsecured creditors: have rights to be paid amounts owed, but the rights may have to be enforced through the courts face significant risk, and accordingly unsecured credit is very unusual have no rights in the event that the debtor defaults

Business/Professional Ethics Directors/Executives/Acct

8th Edition

ISBN:9781337485913

Author:BROOKS

Publisher:BROOKS

Chapter6: Professional Accounting In The Public Interest

Section: Chapter Questions

Problem 1.7EC

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Question

Please explain in detail.

Unsecured creditors:

have rights to be paid amounts owed, but the rights may have to be enforced through the courts

face significant risk, and accordingly unsecured credit is very unusual

have no rights in the event that the debtor defaults

only have the recourse of severing business ties with the defaulting debtor

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