Which of the Following Officials Is Bound by a Fiduciary

question 14

Multiple Choice

Which of the following officials is bound by a fiduciary duty to all creditors,but will tend to focus on the interests of a creditor he is associated with?

• A) an insolvency trustee
• B) a receiver
• C) an inspector
• D) A trustee in bankruptcy

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Definitions:

Capital Interest

The share of ownership a partner has in a partnership, often represented as the value of their investment.

Bonus

An additional compensation paid to employees as an incentive or reward beyond their regular salary or wages.

Liquidation

The process of winding up a company's financial affairs by selling off its assets to pay creditors and distribute any remaining assets to the shareholders.

Partnership Liabilities

Debts and obligations for which partners in a business partnership are mutually responsible.