Which of the Following Is True About "Proof of Claims

question 45

Multiple Choice

Which of the following is true about "proof of claims?"

• A) They must be filed by both secured and unsecured creditors in order for the creditor to receive a distribution from the bankruptcy estate.
• B) They need not be filed by secured creditors whose security covers the amount of their debt.
• C) They are never used by secured creditors.
• D) They can generally be filed any time within 1 year of the filing of the bankruptcy petition.

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Definitions:

Issue Price

The initial price at which securities are offered to the public.

Annual Dividend

The total dividend payment a shareholder receives from a company over the course of a year, often expressed as a per share amount.

Flotation Cost

Flotation cost is the total cost incurred by a company in offering its securities to the public for sale, including underwriting, legal, and registration fees.

Tax Rate

The percentage at which an individual or corporation is taxed on their income.