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Creditors' Rights in Business Law Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1.

Suzie's Superstores, Inc. wants to file bankruptcy. They are insolvent and want to re-organize their debt, but stay in business.

Which type of Bankruptcy proceeding will Suzie's Superstores most likely to use?

Question 2 2. Greg wants to file bankruptcy. He wants to keep all of his assets, though his house is in foreclosure. He owes $200,000 on his house and $100,000 in unsecured debt, but has a regular salary of almost $30,000 a year. Which chapter of bankruptcy is Greg likely use?

Question 3 3. In general, _____ do NOT receive any compensation from their claims following liquidation of a business.

Question 4 4. Kevin wants to file bankruptcy. He's the married father of three college-aged children. Kevin's family owns several assets including three cars and two houses. Between Kevin and his wife, the family makes an income of approximately $300,000. Their overall debt is over $1 million, with more than half of that in unsecured debt like credit cards and medical bills. Kevin will likely use _____ while filing for bankruptcy.

Question 5 5. Maria wants to file bankruptcy for her business, Maria's Manicures. She's closing the business completely and wants to completely liquidate the assets. She doesn't plan to re-open. Maria will use _____ bankruptcy.

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Question 6 6. Celine wants to buy a brand new house and borrows money from the National Commercial Bank. In exchange, she gives the bank a legal claim to the house. What is true about the house?

Question 7 7. Jack borrows money from his friend Jill in order to buy a laptop. Jill is a:

Question 8 8. Paul borrows money from a leasing company in order to buy a truck for his business. In exchange, he gives the lender a legal claim to the truck. This scenario is an example of a:

Question 9 9. What type of debt is credit card borrowing?

Question 10 10. Anne borrows money from the bank in order to buy a tractor for her farm. In exchange, she gives the bank a legal claim to the tractor. This legal claim is called a:

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Question 11 11. What is a secured loan, in which a real property is given as collateral, called?

Question 12 12. Jonathan bought a car and offered it as collateral to the bank for a loan. Choose the statement that is TRUE after Jonathan's loan has been disbursed.

Question 13 13. The bank sells John's house at an auction. Unfortunately the selling price is less than what he still owes on the house, so John is forced to pay the difference through a _____.

Question 14 14. Rick loses his job and is unable to make house payments for several months. His bank moves to seize the house by _____.

Question 15 15. Richard and Susan are buying appliances for their new house. The appliances served as collateral for the loan, which is called _____.

Creditors' Rights in Business Law Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

GACE Business Education (542): Practice & Study Guide  /  Business Courses
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