Which of the Following Statements Is TRUE with Respect to the Relationship

question 57

Multiple Choice

Which of the following statements is TRUE with respect to the relationship between bankruptcy and insolvency?

• A) Bankruptcy begins with a bankruptcy order, whereas insolvency begins with a receiving order.
• B) A person can be bankrupt without being insolvent.
• C) While an individual can be either bankrupt or insolvent, a corporation can be bankrupt but never insolvent.
• D) An act of insolvency automatically triggers bankruptcy.
• E) Before a person can be put into bankruptcy involuntarily, a court must find that they have committed an act of bankruptcy, which includes being insolvent.

---

Definitions:

Phosphorus

A chemical element with the symbol P and atomic number 15, essential to all living cells and used in the manufacture of fertilizers.

Oxygen

A chemical element with symbol O, essential for cellular respiration in most aerobic organisms.

Nitrogen

A chemical element with symbol N and atomic number 7, essential for life's building blocks like amino acids, proteins, and nucleic acids.

Carbon

A chemical element with symbol C, essential as the basis for all known living organisms, and forming the basis of organic chemistry.