A Business Realizes That It Cannot Pay Its Creditors and Seeks

question 61

Multiple Choice

A business realizes that it cannot pay its creditors and seeks relief under the Bankruptcy and Insolvency Act. Which of the following is TRUE?

• A)Its only option is to make a voluntary assignment in bankruptcy.
• B)Its only option is to wait until petitioned into bankruptcy by its creditors.
• C)It can make a proposal under the Bankruptcy and Insolvency Act and creditors will automatically be prevented from suing for a certain period of time.
• D)It can only wait for a receiving order to be issued
• E)None of the above.

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Definitions:

Morning Shift

A work shift that typically starts in the early morning hours and concludes in the early afternoon.

Full-Time Position

Employment status where an individual works a minimum number of hours defined by their employer, typically around 40 hours per week.

Self-Determination

The process by which a person controls their own life, making choices and decisions based on their own preferences and interests without undue external influence.

Autonomy

The capacity to make decisions independently and the freedom to act according to one's own will without undue influence or coercion.