Xiang Is an Independent Financial Advisor

question 10

Multiple Choice

Xiang is an independent financial advisor.As a result of a few bad decisions, he has fallen on hard times.He is unable to meets his liabilities as they fall due.He believes, however, that he can avoid bankruptcy by persuading all of his creditors to agree to a proposal under which he would be given more time to pay his debts in exchange for his willingness to pay a higher rate of interest.Which of the following statements is TRUE?

• A)The proposal process must include all of Xiang's creditors, both secured and unsecured.
• B)Xiang's proposal will succeed only if two thirds of his creditors accept it.
• C)If Xiang's proposal is rejected by his creditors, he automatically is placed into bankruptcy.
• D)Xiang is entitled to make such a proposal only if he already is in bankruptcy.
• E)The Bankruptcy and Insolvency Act does not say anything about Xiang's proposal.

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Definitions:

MMPI

The Minnesota Multiphasic Personality Inventory, a comprehensive psychological assessment tool used to diagnose mental disorders and personality structure.

Personality Disorders

A group of mental disorders characterized by enduring maladaptive patterns of behavior, cognition, and inner experience, exhibited across many contexts.

Clinical Disorders

Health conditions characterized by a clinically significant disturbance in an individual's cognition, emotion regulation, or behavior.

Myers-Briggs Type Indicator

A personality assessment tool that classifies individuals into 16 distinct personality types based on preferences in how they perceive the world and make decisions.