1. Bankruptcy Insolvency means:

a. Book value of assets is greater than liabilities

b. Fair value of assets is less than liabilities

c. Inability to meet financial obligations as they come due

d. Liabilities are greater than book value of assets

2. Aside from liability discharge provided for in the reorganization plan, the discharge of a debtor corporation’s liabilities occurs when:

a. The plan is accepted by a majority of unsecured creditors

b. Each class of claims has accepted the plan or is not impaired under it

c. Each holder of a claim has accepted the plan or will receive at least as much as if the company were liquidated

d. The court confirms that the plan is fair and equitable

3. A trustee’s election in a Chapter 7 case requires:

a. Approval by a majority of creditors

b. Approval by a majority of claims represented

c. Approval by a majority in dollar amount of voting creditors, and at least 20% of claims must vote

d. Approval of two-thirds in dollar amount and a majority of holders of all claims

4. A corporation may not be a debtor in possession if:

a. The case is initiated in a voluntary filing

b. The case is initiated in an involuntary filing

c. Loans other than for goods and services exceed $5,000,000

d. The court concludes that appointment of a trustee is in the best interests of creditors