If a Creditor Owns a Debt That Is Provable and Nondischargeable

question 44

Multiple Choice

If a creditor owns a debt that is provable and nondischargeable, he or she _____.

• A) may participate in the distribution of the debtor's estate
• B) can recover only the money provided by the bankrupt's discharge
• C) must not enter into any voluntary agreement with the debtor for discharge of the debt
• D) needs court approval for reaffirmation of loans

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Definitions:

Variable Component

An element of cost or expense that varies directly with changes in production volume, business activity, or other drivers.

Contribution Margin Ratio

The percentage of each sales dollar remaining after variable costs have been deducted, indicating how much contributes to fixed costs and net profit.

Unit Contribution Margin

The difference between the selling price per unit and the variable cost per unit, indicating the amount each unit contributes to covering fixed costs and generating profit.

Degree of Operating Leverage

A financial ratio that measures the percentage change in operating income in response to a percentage change in sales.