An Ordinary Contract Between the Debtor and His Creditors Whereby

question 58

Multiple Choice

An ordinary contract between the debtor and his creditors whereby the creditors receive pro rata a part of their claims and the debtor is discharged from the balance of the claims is:

• A) a non-statutory composition.
• B) a statutory assignment.
• C) an equity receivership.
• D) an automatic stay.

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Definitions:

External Costs

Costs that are not borne by the producers or users of a product or service, but by society or the environment.

Polluting Firms

Companies that release harmful substances into the environment as a byproduct of their production processes.

Emissions Standards

Emissions standards are government-imposed limits on the amount of pollutants that can be emitted by vehicles and other sources, to protect environmental and public health.

Marginal Social Benefit

The supplementary advantage to society from the production or utilization of an additional unit of a product or service.