Which of the Following Is Not a Duty of a Trustee

question 27

Multiple Choice

Which of the following is not a duty of a trustee in a chapter 7 liquidation?

• A)​File proofs of claim with the bankruptcy court.
• B)​Investigate the financial affairs of the debtor.
• C)​Make payments to creditors as promptly as practicable with regard for priorities.
• D)​File reports of progress.

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Definitions:

Financial Statements

Condensed reports that detail the financial health of a company, including balance sheet, income statement, and cash flow statement.

Information Symmetry

A situation where all parties involved in a transaction have equal access to all relevant information, leading to fair and efficient market outcomes.

Liquidation Value

The estimated total value of a company's assets if they were sold off immediately, often considered in the context of a business winding down or in bankruptcy.

Sales Value

Sales value represents the total revenue generated from goods or services sold by a company over a specific period.