Debt and Bankruptcy MCQs

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Which of the following would offer an additional source of protection to both a commercial lender and a business with accounts receivable against the ...





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What is the legal term for the right of a guarantor to recover from the debtor any payments made to the creditor?






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What must be in place in order for a lender to appoint a receiver or manager in the event of default on a commercial operating loan?





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Which of the following is a distinguishing characteristic of an unsecured debt?





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What is the name given to an agreement that includes all of the debtor's personal property as collateral?





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What type of financing agreement would contain conditions relating to the provision of, among other things, an invoice, shipping receipt, and proof of...






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Why is a personal guarantee of a commercial loan considered to be dangerous?




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Which of the following would be most likely to negatively affect the viability of a business, in the absence of influences such as a declining economy...





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Why was the body of law specifically governing insolvency created?





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What is a debtor's recourse in the all too common circumstances where the debtor's lack of financial resources renders it unable to retain t...






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What is the difference between a bankrupt debtor and an insolvent debtor?






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What must be acquired in order for a business to continue to function after its insolvency proposal has been approved by its creditors?






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Marina borrowed $5000 of the $25 000 she required to purchase her car from Ima Big Bank. The only financing document Marina signed was Ima Big Bankâ...





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Which of the following would be a major factor in determining the remedies available to a borrower's creditors in the event of the borrower defau...






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Assets acquired by a debtor after pledging a security interest in its current assets are commonly described in financing documents as




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Which of the following would typically be requested by a lender being asked to grant a large commercial operating line of credit?






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When a lender has appointed a receiver, its primary objective is redeeming sufficient assets to clear a loan. To which of the following is the ability...






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Once a security interest has been perfected, the secured party will have priority over security interests that have not been perfected.




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Which of the following represents a restriction on collection agencies when attempting to collect a debt?






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How are secured creditors impacted by the filing of a proposal?





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A debtor must ________________ prior to creditors being in a legal position to petition the debtor into bankruptcy.




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What is the legal term given to the collective assets of an insolvent debtor?






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Which of the following is a distinguishing characteristic of trustees in bankruptcy?





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In which of the following situations would a debtor be considered "insolvent," as that term is applied in the Bankruptcy and Insolvency Act.






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BigBank Inc. is enforcing a security interest against all, or substantially all, of the inventory, accounts receivable, or other assets of a business ...






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Which of the following is a characteristic of a personal guarantee?






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Legislation contractual remedies enabling a creditor to begin legal action for arrears, retain or take possession of collateral, and appoint a receive...




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ImaBigBank has completed its risk assessment for a commercial loan application and has decided to grant the loan. What is the legal term given to the ...






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Max and Sylvia Grundy are an elderly couple who were recently persuaded by their nephew to execute a guarantee in favour of a bank that was loaning hi...






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What is the unique feature of a purchase-money security interest (PMSI)?





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Once discharged, a bankrupt in personal bankruptcy is released from debts.




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One of the purposes of early English bankruptcy legislation that is confirmed in Canada's version is to ensure, if possible, that potentially via...




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A new business, Vale Gifts Inc., hopes to negotiate a loan with BigBank Inc. in order to finance the improvements it wishes to make in its store. Whic...






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Which of the following is a distinguishing feature of a guarantee?






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Which of the following best describes the purpose of bankruptcy and insolvency law?






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What legislation allows a debtor to seek remedies in order to bring closure to its obligations when a creditor has indicated that the debt is unworthy...






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What is the legal name given to contractual arrangements between a debtor and its creditors for payment of debts that will allow a financially distres...






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What is the legal effect if the creditors reject the debtor's Division I proposal?






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Which of the following entails high interest rates and fees and ranking ahead of most other debts?






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What is meant by a debtor's assignment in bankruptcy?






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Which of the following is a distinguishing feature of a Division II Proposal?






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Which of the following would most likely influence the creditor's decision with regard to its options relating to the deteriorating financial hea...






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Which of the following is a limitation of an arrangement under the CCAA?






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What is the name given to the person appointed by creditors to act on their behalf and supervise the actions of the trustee in bankruptcy?






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Realizing that the financial health of his business was unlikely to recover from the increased competition in the market, Clive decided to transfer ti...






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What is the nature of a relationship in which a business sells inventory to a customer to which it is not related or connected in anyway?






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Who must be recognized as either holding an accounting designation or being employed by a corporate trustee?






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By whom are inspectors typically appointed, with respect to supervising the actions of a trustee, among other things?






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Treats More Bakery Inc. expects that bankruptcy proceedings will be commenced against it within the next month, and the owner has just transferred the...






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What are fraudulent preferences, reviewable transactions, and fraudulent conveyances?






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What is the significance of a court deeming that a payment made by an insolvent debtor is a fraudulent preference and, as such, is void?






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What is the maximum penalty that may be imposed under the BIA for a bankruptcy offence?






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Which of the following would strongly support an exception to a settlement violation of the Bankruptcy and Insolvency Act?






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What legislation specifically affects conveyances of real or personal property made with the intent to, among other things, default or defraud a bankr...






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How are details of a bankruptcy provided to the bankrupt's creditors?






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How does a creditor provide formal notice to the trustee of the amount owed and the nature of the debt?






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Which of the following would most likely be applicable to the Canada Revenue Agency with respect to a bankrupt's unremitted payroll deductions?






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Which of the following is a distinguishing characteristic of a preferred creditor, with respect to distributing the proceeds of a bankrupt's esta...






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Which of the following would most strongly support a type of superior priority when distributing the proceeds of a bankrupt's estate to creditors...






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How long after the assignment into bankruptcy should a bankrupt in a first-time personal bankruptcy expect to wait before being discharged from bankru...






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In what way are a debtor, a creditor, and a trustee treated similarly under the Bankruptcy and Insolvency Act?






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Which of the following is most frequently the result of proving that the value of assets was less than half the liabilities?






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How is it possible for a business to reduce and perhaps transfer the legal risks of bankruptcy associated with all aspects of financing its enterprise...






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How will a trustee distribute a bankrupt's estate proceeds to secured, preferred, and unsecured creditors?






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Which of the following forms of credit does "trade credit" usually assume?






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Tiki Imports Ltd. plans to purchase items in inventory from a supplier in China. What would Tiki want to assure that it has obtained prior to making p...






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Brooker Boat Inc. plans to sell 10 boats to a Holiday Boat Sales Ltd. What is the name of the written promise by Holiday's bank to Brooker to pay...






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Which of the following is a commonality shared by buildings and inventory with respect to financing a business?






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A lender considering a commercial loan application examined the potential customer’s intellectual property and its accounts receivable history....






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Consumer protection laws relating to lending institutions are scattered throughout a number of pieces of legislation. What is the unifying theme that ...






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A lender has been fined, its licence has been suspended, and it is subject to an order by the regulator prohibiting further violations. What may the c...






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Which of the following companies would risk the revocation of its licence for failing to provide accurate information?






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Which of the following is a valid criticism of the federal government's delegation of the regulation of payday lending costs to the provinces?






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Gita has entered into a loan contract with ABC Loans Inc. in which Gita agrees to pay 70 percent per annum on the outstanding balance of the loan. Whi...






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What is one of the criticisms levelled against new federal legislation regulating payday loans?






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Which of the following is a valid characterization of the borrower’s promise to repay a loan and the lender’s collateral or security if ...






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How are assets used as security generally classified with respect to a general security agreement?






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Which of the following represents a valid criticism of payday loans?






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Why is the unencumbered status of assets considered to be a distinguishing characteristic?






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Which of the following is a common feature shared among the provinces with respect to personal property security arrangements?






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With respect to the priority of registered interests in a personal property security registry, which of the following would be given priority as a res...






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What role does legislation play with respect to enabling a creditor to begin legal action for arrears, retain or take possession of collateral, and ap...






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Atlas Vehicle Loans Ltd. has a valid security interest in a truck owned by one of its clients. The client is now in default under the loan agreement a...






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Which of the following would likely give a bank unlimited access to the debtor’s assets as an unsecured creditor?






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Which of the following is a common means of dealing with payment risk in international transactions?