Which One of the Following Is a Requirement That Must

question 51

Multiple Choice

Which one of the following is a requirement that must be met before an involuntary bankruptcy petition can be filed when there are at least 12 unsecured creditors?

• A) The petition must be filed by all creditor(s) to whom the debtor owes at least $13,475.
• B) The petition must be signed by creditor(s) with unsecured debts of at least $5,000.
• C) The petition must be signed by a majority of the creditor(s).
• D) The petition must be signed by creditor(s) to whom the debtor owes more than half of its debts.
• E) The petition must be signed by at least three creditors with unsecured debts of at least $13,475.

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Definitions:

Temporary Investment

Short-term investments made by a company to earn a return on idle cash without impacting its liquidity.

Long-Term Investment

Investments held for an extended period, usually more than one year, with the intention of gaining significant returns over time.

Dividends Received

Income earned from investments in the form of payments distributed by a corporation to its shareholders.

Minority Interest

The portion of subsidiary companies' equity (net assets) that is not owned by the parent company; represents the outside shareholders' percentage of ownership in the subsidiary.