In Which of the Following Situations Will a Smaller Sum

question 65

Multiple Choice

In which of the following situations will a smaller sum be unable to discharge a larger debt?

• A) If the smaller sum is paid before the due date of the larger debt.
• B) If an additional article or service is given together with the payment of the smaller sum.
• C) If the smaller sum is paid when the larger sum would ordinarily be due,but the debtor is on the verge of insolvency.
• D) A smaller sum is never able to discharge a larger debt.

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Definitions:

Evaluation

The process of assessing or judging the value, performance, or quality of something through analysis.

Distress

High levels of stressors that have destructive and negative effects on effort and performance.

Stressors

Factors or conditions that induce stress, potentially leading to a range of psychological and physiological responses.

Performance

The level of achievement or effectiveness of an individual or organization in accomplishing goals or tasks.