Which of the Following Is a Distinguishing Feature of a Division

question 62

Multiple Choice

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

• A) The proposal is approved if creditors representing two thirds of the total amount owed and a majority in number vote to accept it.
• B) A rejection of the proposal does not automatically result in bankruptcy.
• C) The proposal is accepted if creditors representing half of the total amount owed and a majority in number vote to accept it.
• D) They tend to be used where individuals have debts that exceed $250 000.

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Definitions:

Entity

Any organization, institution, or being that has a distinct existence, legally recognized as capable of rights and duties.

Profit

The financial gain achieved when the revenues earned from business activities exceed the expenses, costs, and taxes needed to sustain the activity.

Personally Liable

The state of being legally responsible for one's actions on an individual basis, which can result in personal financial liability.

Partnership

A form of business conduct legally established among at least two partners with shared responsibilities and profit distribution.