[Defaulted Loan] Bruce Wanted to Open His Own Restaurant, the Burger

question 45

Multiple Choice

[Defaulted Loan] Bruce wanted to open his own restaurant, The Burger Bar, and called his friend Janet for a loan. Janet orally agreed to loan Bruce $200,000. The agreement was not put into writing. Two years later, the loan was never repaid and is in default. The Burger Bar is bankrupt and Janet decides to sue Bruce in his individual capacity.
-If Janet sues Bruce in his individual capacity, what burden of proof would she have to prove her claim?

• A) Beyond a reasonable doubt
• B) By a preponderance of the evidence
• C) Clear and convincing
• D) Reasonable suspicion
• E) Some credible evidence

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Definitions:

Non-Operating Activities

Transactions and events that are not related to the primary operations of a business, such as investment income or losses from the sale of assets.

Asset Disposals

The process of getting rid of an asset through sale, trade, or removal, often because it's obsolete, no longer needed, or to gain cash.

Interest Expense

The cost incurred by an entity for borrowed funds, represented as the interest payable on any type of debt.

Casualty Losses

Financial losses resulting from sudden, unexpected, or unusual events such as accidents, natural disasters, or vandalism.