Which of the Following Statements Is FALSE

question 8

Multiple Choice

Which of the following statements is FALSE?

• A)a person who declares bankruptcy and then earns income before they are discharged may have the time period for discharge extended to 21 months
• B)if you declared bankruptcy and have not yet been discharged, extra debts you incur will not be discharged by that bankruptcy if you failed to warn the creditor of your bankrupt status
• C)a corporation that declares bankruptcy is not discharged from its debts unless the debts are fully paid off
• D)a person may be able to keep some money in an RRSP or RRIF even if they declare bankruptcy
• E)an income tax debt of $175,000 cannot be discharged in a personal bankruptcy

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Definitions:

Agency Relationship

A legal and fiduciary relationship between two parties, where one person (the agent) is authorized to perform acts or make decisions on behalf of another (the principal).

Commissions

Fees paid to agents or salespeople for facilitating transactions or sales.

Constructive Trust

A legal remedy imposed by a court to rectify unjust enrichment or wrongful conduct, requiring the holder of property to transfer it to the rightful owner.

Accounting

The systematic recording, analyzing, summarizing, and reporting of financial transactions of a business or individual.