Question 1

In Akin Bay Company v. Von Kahle, the court ruled

Accepted Answer

A)  The assignee cannot stand in any better position than the assignor. 
B)  The assignee and the assignor must always be in the same position. 
C)  The assignee must stand in a better position than the assignor. 
D)  It is up to the court's discretion to determine between the assignee and assignor of which should be in the better position. 
A)  The assignee cannot stand in any better position than the assignor. 
B)  The assignee and the assignor must always be in the same position. 
C)  The assignee must stand in a better position than the assignor. 
D)  It is up to the court's discretion to determine between the assignee and assignor of which should be in the better position.

Question 2

An individual or group of individual professionals who assist management in the workout process is called

Accepted Answer

A)  Credit counselor 
B)  Bankruptcy advisor 
C)  Turnaround advisor 
D)  Workout judge 
A)  Credit counselor 
B)  Bankruptcy advisor 
C)  Turnaround advisor 
D)  Workout judge

Question 3

All of the following are part of the assignment for the benefit of creditor process except

Accepted Answer

A)  The assignee gives notice to the creditors of the assignment. 
B)  A professional liquidation firm takes possession of the assets and arranges to sell them. 
C)  The assignee reviews all claims made on the assets. 
D)  The assignee files the necessary documents for forfeiture. 
A)  The assignee gives notice to the creditors of the assignment. 
B)  A professional liquidation firm takes possession of the assets and arranges to sell them. 
C)  The assignee reviews all claims made on the assets. 
D)  The assignee files the necessary documents for forfeiture.

Question 4

Shelby "the fixer" Hiland is a famous consultant to the management of struggling businesses trying to fix their financial problems and repay their debt. They say she is ruthless but effective as she has a 100% success rate for her clients. Shelby is a(n)

Accepted Answer

A)  Enforcer 
B)  Turnaround advisor 
C)  Turnabout consultant 
D)  Financial professional 
A)  Enforcer 
B)  Turnaround advisor 
C)  Turnabout consultant 
D)  Financial professional

Question 5

Briefly explain the process involved in the Assignment for the Benefit of Creditors (ABC).

Accepted Answer

An ABC is a form of liquidation that is

Question 6

An equity infusion requires

Accepted Answer

A)  Money through an outside private investor. 
B)  The debtor must sell personal assets. 
C)  The creditor must reduce the amount of debt. 
D)  The court must approve the arrangement. 
A)  Money through an outside private investor. 
B)  The debtor must sell personal assets. 
C)  The creditor must reduce the amount of debt. 
D)  The court must approve the arrangement.

Question 7

What is the advantage of a business using a workout model rather than bankruptcy?

Accepted Answer

A workout model allows the debtor to try

Exam 25: Alternatives for Insolvent Borrowers

In Akin Bay Company v. Von Kahle, the court ruled

An individual or group of individual professionals who assist management in the workout process is called

All of the following are part of the assignment for the benefit of creditor process except

Shelby "the fixer" Hiland is a famous consultant to the management of struggling businesses trying to fix their financial problems and repay their debt. They say she is ruthless but effective as she has a 100% success rate for her clients. Shelby is a(n)

Briefly explain the process involved in the Assignment for the Benefit of Creditors (ABC).

An equity infusion requires

What is the advantage of a business using a workout model rather than bankruptcy?

Legal Foundations and Thinking Strategically

Business, Societal, and Ethical Contexts of Law

Business and the Constitution

The American Judicial System, Jurisdiction, and Venue

Resolving Disputes: Litigation and Alternative Dispute Resolution

Contracts: Overview, Definition, Categories, and Source of Law

Mutual Assent: Agreement and Consideration

Capacity and Legality

Enforceability

Performance

Breach and Remedies

Contracts for the Sale of Goods: Overview of Article 2

Sales Contracts: Agreement, Consideration, and the Statute of Frauds

Title, Allocation of Risk, and Insurable Interest

Performance and Cure in Sales Contracts

Breach and Remedies in a Sales Transaction

UCC Article 2A: Lease Contracts

Sales Warranties

Definition, Creation, and Categories of Negotiable Instruments

Negotiation, Endorsements, and Holder in Due Course

Liability, Defenses, and Discharge

Checks, Deposits, and Financial Institutions

Secured Transactions

Creditors Rights

Bankruptcy

Choice of Business Entity and Sole Proprietorships

Partnerships

Limited Liability Partnerships and Limited Liability Companies

Corporations: Formation and Organization

Corporate Transactions: Acquisitions and Mergers

Overview of the Securities Market: Definition, Categories, and Regulation

Regulation of Issuance: The Securities Act of 1933

Regulation of Trading: The Securities Exchange Act of 1934

Regulation of Corporate Governance

Regulation of Financial Markets

Agency Formation, Categories, and Authority

Duties and Liabilities of Principals and Agents

Employment at Will

Employment Regulation and Labor Law

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Administrative Law

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Criminal Law and Procedure

Insurance Law

Environmental Law

Personal Property, Real Property, and Land Use Law

Wills, Trusts, and Estates

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