Lodging a Declaration of Intention to Present a Debtors Petition

question 52

Multiple Choice

Lodging a declaration of intention to present a debtors petition is not a good option for a debtor who wants to:

• A)Take some time to negotiate with creditors.
• B)Have a short cooling off period to consider her options.
• C)Stop creditors from taking action to recover a debt for 7 days.
• D)Prevent a creditor from proving at a later stage that it is appropriate for the debtor to be made bankrupt.

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Definitions:

Par Value

This term describes the nominal or face value of a bond, stock, or coupon as stated by the issuer, often used in the context of bonds and shares.

Preferred Stock

a class of stock that typically provides dividends before dividends are distributed to common stockholders and may have priority over common stock in the event of liquidation.

Common Stock

Equity ownership in a corporation, with holders having a claim on the company’s profits in the form of dividends and voting rights in corporate governance.

No Par Value

Refers to shares issued without a stated face value, with their selling price determined by the issuing company.