Critical Thinking Question. Write an answer below under hundred and fifty word. 1) Rose, Violet, and Daisy decided to open a greenhouse. They formed a limited partnership with Rose and Violet as general partners, and Daisy as a limited partner. Each partner invested $10,000 in the partnership. While Rose went away for a week, Violet made a contract for $10,000 for remodeling of a green house. When Rose returned, she disapproved the contract. Discuss who will be liable on this contract. Answer:

Multiple Choice Questions 1) What Article of the U.S. Constitution grants Congress powers to make bankruptcy laws? A) Article I B) Article II C) Article III D) Article IV Answer: 2) In the Bankruptcy Code, what term is used in place of the term bankrupt? A) Defaulter B) Debtor C) Nonpayer D) Insolvent Answer: 3) What is the main goal of Chapter 11 bankruptcy? A) Adjustment of debts of individuals B) Business liquidation C) Business reorganization D) Liquidation of debts of individuals Answer: 4) What type of bankruptcy is specifically designed to help family farmers? A) Chapter 7 B) Chapter 9 C) Chapter 11 D) Chapter 12

5) What term describes the acceptance of the case by the bankruptcy court? A) Restraining order B) Order for relief C) Decree D) Provisional order Answer: 6) What term describes a self-operating postponement of debt collection proceedings against the debtor? A) Automatic stay B) Automatic suspension C) All of the above D) None of the above Answer: 7) What term describes a bankruptcy proceeding initiated by creditors? A) Involuntary bankruptcy B) Forced bankruptcy C) Mandatory bankruptcy D) Compulsory bankruptcy Answer: 8) What term describes an eligibility requirement designed to prevent affluent people from filing Chapter 7? A) Assets calculation B) Means testing C) Means disclosure D) All of the above Answer: 9) What types of exemptions exist? A) Federal exemptions

B) State-granted exemptions C) Municipal exemptions D) Both A and B Answer: 10) What term describes items that may be retained by the debtor? A) Res B) Exemptions C) Chattels D) Chose in action Answer: 11) Who is appointed by the court to hold a debtor's nonexempt assets in trust? A) Trustee in bankruptcy B) Guardian ad litem C) Administrator de bonis non D) Administrator pendente lite Answer: 12) What term describes a right to payment? A) Declaration B) Claim C) Statement D) Affirmation Answer: 13) What releases the debtor from all debts that were part of the bankruptcy proceeding? A) Discharge in bankruptcy B) Promissory estoppel C) Adverse possession D) Averments Answer:

14) What creditors hold liens on the debtor's property? A) Principal B) General C) Secured D) Protected Answer: 15) How is a Chapter 11 bankruptcy called? A) Reformation B) Reorganization C) Adjustment D) Restructuring Answer 16) What is a requirement of a reorganization plan? A) Setting forth a method of repaying debts B) Separating creditors into various classes C) Be feasible D) All of the above Answer: 17) Who files a Chapter 12 bankruptcy? A) Family farmers B) Family businesses C) General partnership D) Joint venture Answer: 18) What must a debtor filing Chapter 12 bankruptcy do? A) Develop a reorganization plan B) Serve as a debtor-in-possession C) Perform the functions of a trustee

D) All of the above Answer: 19) What must a person filing a Chapter 13 bankruptcy do? A) Meet with an approved nonprofit credit counselor B) Make a good-faith effort to repay debts C) Submit a wage earner's plan D) All of the above Answer 20) What are priority debts referred to in Chapter 13 bankruptcy? A) Credit card debt B) Past property taxes C) Student loans D) Medical bills Answer: