Explain the difference between the lien theory and the title theory in relation to mortgages
The rights and duties of the parties to a mortgage may depend on whether the mortgage is considered to create a lien or to transfer legal title. Most states follow the lien theory under which the mortgagor (the debtor) retains title and is entitled to possession of the premises to the exclusion of the mortgagee (the creditor), even if the mortgagor defaults. Only through foreclosure or through the court appointment of a receiver can the mortgagor lose the right of possession. Under the title theory, the mortgage is considered to transfer title to the realty to the mortgagee who then has the right of ownership and possession. Practically, though, the mortgagor usually retains possession.
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Which of the following is a condition that contributes to high performance?
A. Teams perform work only if the employees are interested in a project. B. Work design gives employees the opportunity to utilize a variety of skills. C. Training is not ongoing, but it is implemented when necessary. D. Changes to layout and work methods are handled by management. E. Employees' rewards and compensation relate mainly to individual performance.
Lynette Company's Inventory balance at 12/31/04 was $200,000 and was $188,000 at 12/31/05. Its Accounts Payable balance at 12/31/04 was $80,000 and was $84,000 at 12/31/05, and its cost of goods sold for 2005 was $720,000. The company's total amount of cash payments for merchandise in 2005 equals:
A) $704,000. B) $712,000. C) $720,000. D) $728,000. E) $736,000.