All but Which One of the Following Is a Purpose

question 87

Multiple Choice

All but which one of the following is a purpose of bankruptcy legislation?

• A) To preserve existing business relations
• B) To punish recalcitrant debtors
• C) To fairly divide the assets among creditors
• D) To allow rehabilitation of debtors

---

Definitions:

Classical Theory

An economic theory that suggests that free markets operate under the laws of supply and demand and are self-regulating.

Employment

The condition of having paid work.

Unemployment

The situation in which individuals who are capable of working and actively seeking a job are unable to find employment.

Full Employment

Full employment refers to a situation where all available labor resources are being used in the most efficient way possible, with no involuntary unemployment.