With Regard to Bankruptcy and Debt Collection, Which of the Following

question 82

Multiple Choice

With regard to bankruptcy and 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 may or may not result in bankruptcy for the debtor.
• B) Both fraudulent conveyance and fraudulent preferences acts attempt to prohibit the debtor from delaying, hindering, or defrauding the creditor.
• C) Corporations that go into receivership may not be involved in bankruptcy; the receivership may be based on contract.
• D) The commission of a bankruptcy offence could prevent a bankrupt debtor from being discharged.
• E) Any assets obtained by a discharged bankrupt can still be claimed by former unsecured creditors who placed the former bankrupt into bankruptcy.

---

Definitions:

Beta

A measure of a stock's volatility in relation to the overall market; a beta above 1 indicates that the stock's price tends to be more volatile than the market.

Cost of Equity

The yield a company needs to determine whether an investment satisfies its capital return criteria.

Risk-Free Rate

The expected return on an investment that carries no risk, often shown through the yield of government bonds.

Expected Stock Market Return

The predicted average return of the stock market or a specific segment of it over a specific period, considering historical trends and market conditions.