Direct bankruptcy costs are best defined as: Multiple Choice The costs that are directly associated with bankruptcy, such as legal and administrative expenses. The equity risk that comes from the financial policy (.e., capital structure) of the firm. The difficulties of running a business that is experiencing financial distress. Theory that a firm borrows up to the point where the tax benefit from an extra dollar in debt is exactly equal to the cost that comes from the increased probability of financial distress The direct and indirect costs associated with going bankrupt or experiencing financial distress Under the Canadian Bankruptcy and Insolvency Act (1992), what is the term that defines the termination of a firm as a going concern? Multiple Choice O Liquidation Reorganization. Technical insolvency. Legal bankruptcy. Business failure