Question 1

Elle is a bankruptcy trustee. Elles duties include

Choose one answer.

a. collecting a debtors property.

b. establishing priority for the payment of unsecured creditors.

c. operating a debtors business to obtain maximum profit for creditors.

d. submitting to an examination under oath by the creditors.

Question 2

Gem Jewelers files a voluntary petition for bankruptcy. In listing its assets, Gem intentionally does not include certain valuable stones. After Gem is granted a discharge, Hasty Catering, one of Gems unsecured creditors whose claims were discharged, learns of the fraud. Hasty can

Choose one answer.

a. do nothing.

b. enforce its claim against Gem.

c. file an involuntary petition for bankruptcy against Gem.

d. take possession of the stones with or without a breach of the peace.

Question 3

Action Sales Corporation obtains an insurance policy that covers losses to Action Sales caused by fire. This is

Choose one answer.

a. casualty insurance.

b. fire insurance.

c. life insurance.

d. title insurance.

Question 4

Allen applies for, and obtains, casualty insurance coverage from Business Insurance Company for his business, Country Club, Inc. The effective date of the policy is the date

Choose one answer.

a. Allen submits the application.

b. Business Insurance accepts the first premium.

c. Business Insurance issues the policy.

d. the application specifies as the effective date.