Which of the Following Is a Defence for a Breach

question 4

Multiple Choice

Which of the following is a defence for a breach of trading while insolvent?
I the director had reasonable grounds to expect,and did expect that the company was solvent;
II the director took all reasonable steps to prevent the debt from being incurred;
III the director relied on a subordinate who they believed was competent and reliable and who was responsible for the information;
IV illness prevented the director from taking part in management.

• A)I and IV;
• B)I,II and III;
• C)II,III and IV;
• D)I,II,III and IV.

---

Definitions:

Price

The amount of money expected, required, or given in payment for something, reflecting the value that consumers and sellers assign to a good or service.

Apples

A fruit cultivated worldwide, also used metaphorically in economics and finance to represent commodities or assets for comparative analysis.

Perfect Complements

Goods that are consumed together in fixed proportions, where the value or utility of one good increases with the consumption of the other.

Income Effect

The change in an individual's or economy's income and how that change will impact the quantity demanded of a good or service.