banking,creditors rights and bankruptcy

ASES FOR DISCUSSION Case #1 e past 12 months. Five months ago, bad rivate investor in order to keep business going. do Jared believes that the business will improve in Jared's business has been experiencing had to suspend payments on the two The business is now $65,000 in debt and another three months when a new bus stop in front of his an experiencing a huge decline in sales over the past 12 months ents on the two loans with his bank and a private investor in ss is now $65.000 in debt and he is not sure what to do. Jared believe us stop in front of his store is added to the transit line. On the other hand, Jared is not sure he can take another three months of phone calls and letters from his lend nd letters from his lenders and suppliers demanding payment or else. 2. Explain to Jared the differences between insolvency and bankruptcy. (LO 11.5) b. Explain to Jared the process of submitting a proposal to creditors under the Bankruptcy and Insolvency Act, (LO 11.5) c. What are Jared's alternatives if the proposal is rejected? (LO 11.5) Case #2 rears. She was very proud of her niece Elandra, who come quite successful and quickly grown to she was in the process of planning the next Adelaide had saved a com had incorporated and started her four horses. Elandra's horsesh ble To make her plans a reality, Elandra required financing of $100.000 ad saved a considerable sum of money over the years. She w and started her own horseracing stable, which had become quite se andra's horses had done very well at the racetrack and she was in the proce cage in the development of her racing stable. To make her a difficulty in finding the money because of the risky nature of horse racing and the fact had been in operation for only four years. She was experiencing difficulty in fi believes Elandra has what it takes to be a success and wants to help her by investing in the racing stable Adelaide also wants to make sure that the risk to her investment is minimal. Adelaide heard that we excellent business course at college and has come to you for advice. Please advise Adelaide on: a. The options available for investing in Elandra's business. (LO 11.3) b. The process involved with each form of investment. (LO 11.3) C. The risks and benefits associated with each form of investment. (LO 11.3)