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:

Northern Division

A designated segment or area of operations within a larger organization, often defined geographically.

Part X2

A specific component or item, designated as "X2," which is part of a larger product or system.

Minimum Acceptable Price

The lowest price at which a party is willing to sell a product or service, often covering at least the costs of production.

Valve Division

A specialized unit or segment within a company that focuses on the production and sale of valves.