With Regard to Debt Collection,which of the Following Is False

question 136

Multiple Choice

With regard to debt collection,which of the following is false?

• A) The Bankruptcy and Insolvency Act provides for a procedure for an insolvent debtor to make a proposal to his creditors that, if accepted by his creditors, will not result in bankruptcy.
• B) Under the execution procedure, the assets of a judgment debtor can be seized to satisfy a judgment debt.
• C) A person who wins in an action and is awarded damages is called a "judgment creditor."
• D) Any assets obtained by a bankrupt after his being discharged can still be claimed by former creditors who placed him into bankruptcy.
• E) A debenture can create a "floating charge" that will not attach to anything specifically until the debtor defaults or until the happening of another "crystallizing" event.

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Definitions:

Efficient Allocation

The distribution of resources in a way that maximizes the net benefit received by an economy.

Allocative Efficiency

A state of the economy where resources are apportioned in a way that maximizes the overall benefit to society.

Productive Efficiency

A state where an economy or entity cannot produce more of one good without producing less of another, utilizing all resources in the best possible way without waste.

Economic Profit

The difference between total revenue and the total opportunity costs (both explicit and implicit) of all resources used.