Under a Composition Agreement

question 24

Multiple Choice

Under a composition agreement,

• A)creditors agree to accept less than the face amount of their claims.
• B)debtors in financial difficulty transfer assets "without recourse."
• C)a creditors' committee is initiated with a plan of settlement proposed by the debtor.
• D)the debtor petitions for relief in a bankruptcy court.

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Definitions:

Informal Powers

Powers not explicitly stated in laws or regulations but exercised by individuals or institutions through influence, negotiation, or personal authority.

Regulated Industries

Sectors under the direct control and rules of governmental agencies to ensure safety, fairness, and compliance.

Probable Cause

A reasonable basis for believing that a crime may have been committed or that evidence of the crime is present in the place to be searched.

Subpoena

A subpoena is a legal document that orders an individual or organization to appear in court or produce documents relevant to a legal case.