John invested RM100,000 in XYZ Company seven years ago.He is concerned about the future of the firm as the profits have plummeted over the last four years.The firm has RM250,000 in outstanding debt and is considering declaring bankruptcy.

(a)If John is the sole-proprietor, describe the financial implication of the firm going bankrupt.

(b)If John and his brother, Peter, are partners and the profit and loss sharing are 60% and 40%, describe the financial implication of the firm going bankrupt.

(c)If the firm is a corporation, describe the financial implication of the firm going bankrupt.