Working in the Finance Department of a Firm That Operates

question 173

Multiple Choice

Working in the finance department of a firm that operates a chain of dry cleaning and tailoring shops,Demonte discovered that tax management is:

• A)not an area of concern for his department,since the accounting department prepares the tax returns.
• B)an activity of his department,but not a major concern because software now available automates the handling of taxes.
• C)an area of major concern.
• D)handled by his department,but is not a major concern because businesses that provide services are exempt from most taxes.

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Definitions:

Bankruptcy Can Continue

The process by which a debtor's assets are managed and liabilities are discharged under the bankruptcy code can proceed, despite certain obstacles or challenges.

Automatic Stay

a legal provision that temporarily halts lawsuits, foreclosures, garnishments, and all collection activities against a debtor the moment a bankruptcy petition is filed.

Order Of Relief

A court order in the context of bankruptcy proceedings that temporarily halts actions by creditors against the debtor.

Creditors' Meeting

A formal gathering of creditors of a bankrupt company to discuss matters related to the bankruptcy process.