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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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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