Wade's Company, WaCo Inc, Is Insolvent and Has Committed an Act

question 51

Multiple Choice

Wade's company, WaCo Inc, is insolvent and has committed an act of bankruptcy.Last year, Wade's friend, Jacques, went through personal bankruptcy last year.Wade is hoping to learn useful lessons from his friend's experience.Which of the following statements is most likely to be TRUE?

• A)While Jacques made a proposal that merely required approval of half of his creditors, if WaCo makes a proposal, it must be approved by 75 percent of its creditors.
• B)Unlike Jacques, Wade can make the debts disappear simply by dissolving WaCo.
• C)Jacques was discharged from bankruptcy, but WaCo will be discharged from bankruptcy only if it pays all of its debts.
• D)Exactly the same rules that applied to Jacques will apply to WaCo as well.
• E)WaCo will have to hire his own trustee, whereas Jacques had one assigned to him.

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Definitions:

Histogram

A graphical display of a frequency distribution, relative frequency distribution, or percent frequency distribution of quantitative data constructed by placing the class intervals on the horizontal axis and the frequencies, relative frequencies, or percent frequencies on the vertical axis.

Frequency Distribution

A summary showing how often different values occur in a dataset, typically presented in a table or graph.

Relative Frequency

The ratio of the number of times a particular value occurs in a set of data to the total number of observations.

Business Administration

The management and organization of business operations and decision-making processes in companies and organizations.