If the Debtor Is Judgment Proof, the Debtor Has Little

question 38

True/False

If the debtor is judgment proof, the debtor has little or no property and income, thus the creditor may never collect.

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Definitions:

Residual Income

The net income that exceeds the minimum required return on a company's investments or operations.

Minimum Return on Investment

The least amount of return that an investor is willing to accept for an investment, considering the risk and opportunity cost.

Support Department Cost

Expenses related to departments within a company that do not directly produce goods but support those that do.

Support Department Allocations

The process of distributing overhead costs from service departments to direct production areas, often based on specific allocation bases.