Donna Goes Through an Involuntary Bankruptcy Proceeding

question 28

Multiple Choice

Donna goes through an involuntary bankruptcy proceeding. An involuntary bankruptcy occurs when​

• A) ​a debtor files forms designated for the purpose in a bankruptcy court.
• B) ​a debtor is unable to pay his or her debts as they come due.
• C) ​a debtor's creditors force the debtor into bankruptcy proceedings.
• D) ​a debtor's debts exceed the fair market value of his or her assets.

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Definitions:

External Costs

Costs that are not borne by the parties involved in an economic transaction but are instead imposed on others or society.

Government Activities

Actions and operations conducted by the government including lawmaking, regulation, and public services.

Externality Rights

The rights pertaining to external effects of transactions, that affect third parties not directly involved in the economic transaction.

Government Imposed Taxes

Charges levied by the government on individuals, goods, services, or transactions to fund public expenditures.