If a Voluntary Petition in Bankruptcy Is Found to Be

question 34

Multiple Choice

If a voluntary petition in bankruptcy is found to be proper, the court's entry of an order for relief

• A)puts into place an automatic stay.
• B)discharges the debtor's obligations.
• C)dismisses the petition.
• D)distributes the debtor's assets to his or her creditors.

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Definitions:

Margin of Safety

An accounting metric indicating how much sales can decline before a business reaches its breakeven point, measuring operational risk.

Volume of Sales

The total quantity of goods or services sold by a business within a specific time period, which can indicate the company's level of activity and market reach.

Break-even Point

The quantity of sales at which total revenues equal total costs, resulting in no net profit or loss.

Cost-volume-profit Chart

A graphical representation that shows the relationship between a company's costs, sales volume, and profit.