Business Failure Risk

question 4

Multiple Choice

Business failure risk

• A) Cannot be diversified.
• B) Causes the business to increase its dividends.
• C) In the worst case, leads to improved earnings.
• D) Is associated with government bonds.
• E) Leads to lower profitability than anticipated.

---

Definitions:

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is a legal process that provides for the liquidation of a debtor's non-exempt assets to pay off creditors. It is often referred to as "straight" or "liquidation" bankruptcy.

Back Alimony

Past due alimony payments that have not been paid as agreed in a divorce or separation agreement.

Guaranteed Student Loans

Loans for educational purposes that are backed by governmental or private entities, ensuring repayment to lenders in case of default.

Intentional Tort

A wrongful act done deliberately, which causes harm to another person, and for which the victim may sue the perpetrator.