Which of the Following Is True Regarding the Law That

question 66

Multiple Choice

Which of the following is true regarding the law that is relevant to bankruptcy claims?

• A) Only federal statutory law is relevant.
• B) Only state statutory law is relevant.
• C) While bankruptcy law is state law, federal law applies to bankruptcy cases in the sense that federal laws regarding debtor's property and creditor claims may apply.
• D) While bankruptcy law is federal law, state law applies to bankruptcy cases in the sense that state laws regarding debtor's property and creditor claims may apply.
• E) Only federal common law is relevant to bankruptcy claims.

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Definitions:

C-Corporation

A C-Corporation is a business structure where the owners or shareholders are taxed separately from the entity, which is recognized as a legal entity under U.S. law.

Double Taxation

The imposition of taxes on the same income, asset, or financial transaction at two different levels, such as corporate earnings and shareholder dividends.

Proprietorship

A business owned and operated by an individual, where the owner is personally responsible for the business's debts.

Limited Liability

Limited liability is a legal structure that restricts investors' or owners' personal responsibility for a company’s debts and losses to the extent of their investment.