1) why was the body of law specifically governing insolvency created?
a. to assist business in coping with specific debt or general obligation
b. to address the respective interests in creditor
c. to force creditor to make concession on repayment terms
d. to ensure insolvent parties and their creditor are treated fairly
2) What is the role of the Companies' Creditor Arrangement Act with respect to developing contractual arrangements that fend off insolvency?
a. Corporation whose debt exceed $5M may seek bankruptcy protection
b. It allows creditors to pursue their normal legal default remedies.
c. It establish when there is a deemed assignment in bankruptcy
d. Corporation with debts exceeding $1M may seek bankruptcy protetion
3)What is the legal term for a statement filed by a creditor claiming, among other things, that a debtor has committed an act of bankruptcy.
a. petition
b. bankruptcy order
c. proposal
d. assignment
4) what is the significance of a court deeming that a payment made by an insolvent debtor is a fraudulent preference and, as such, is void?
a. assets will be returned to estate by way of transaction reversal
b. all payments for service given must be reversed and repaid.
c. all payments to trade creditors must be reversed and repaid
d. assets transferred to relatives prior to insolvency must be reversed
5) How will a trustee distribute a bankruptcy estate proceeds to secured, preferred, and unsecured creditors?
a. according to their respective and contractual priorities
b. by prioritizing the status of creditors according to the age of the loan
c. by prioritizing the status of creditor according to the size of each debt
d. according to the order in which their respective proof of claim were received