Bankruptcy and Financial Laws
How long can a history of bankruptcy follow a company or individual? Five years Ten years Twenty years Thirty years
Twenty years
Which of the following are commodities? Wheat Orange juice Water A and B
A and B
Which of the following describes a subprime loan? A loan with a lower than average interest rate A loan given for a specific purchase A loan given to a high-risk customer A loan which does not comply with credit laws
A loan given to a high-risk customer
The Sarbanes-Oxley Act of 2002: Is very controversial Was written to help correct corporate scandals Has benefited accounting companies All of the above
All of the above
Which of the following companies emerged successfully from bankruptcy? Fruit of the Loom Macy's Polaroid Corporation Kmart Corporation All of the above
All of the above
Which of the following is true of bankruptcy? It is a legal proceeding in which a company seeks protection from creditors while they try to survive It is commonly thought of as starting anew financially It applies also to individuals and businesses All of the above
All of the above
The word bankruptcy come from which of the following? The American Supreme Court A German word meaning "liability" A policy written for the American Finance Association An Italian phrase meaning "broken bench"
An Italian phrase meaning "broken bench"
Which of the following is the newly signed act which may form the future of bankruptcy? Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCA) Protection of Bankrupt Businesses Act (PBBA) Bankruptcy Information and Knowledge Act (BIKA) Debt Prevention and Bankruptcy Advancement Act (DPBAA)
Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCA)
Mergers and acquisitions are regulated by the Federal Trade Commission's __________________. Bureau of Competition Bureau of Investigation Bureau of M&A Board of Trustees
Bureau of Competition
Bankruptcy through liquidation is usually fined under which of the following? Chapter 11 Chapter 7 Chapter 9 Chapter 13
Chapter 7
Which of the following is true of the Federal Deposit Insurance Corporation? It insures bank money It protects consumers from fraud It regulates the sale of commodities It controls the law of car insurance
It insures bank money
Which of the following is NOT one of the suggested alternatives to bankruptcy? More careful spending Securing loans to pay off debt Seeking help from a debt counselor or nonprofit agency Dividing debt and transferring to multiple creditors
Dividing debt and transferring to multiple creditors
Much of financial law was written to deal with the stock market crash of 1987. True False
False
Which of the following is true of Chapter 11 bankruptcy? It is the most common form of bankruptcy for businesses It takes 11 months to complete It is most common for personal cases All of the above
It is the most common form of bankruptcy for businesses
Which of the following is a big downside to bankruptcy? Must consult a lawyer to handle the legal expertise Debtor may end up with much HIGHER credit rating May not clear all debt A and C
Must consult a lawyer to handle the legal expertise
Financial law does NOT include laws dealing with which savings and investment channel? Insurance Real estate Banks Commodities
Real estate
Which of the following develops and administers credit laws? The Federal Deposit Insurance Corporation The Securities and Exchange Commission The United States Financial Security Association The Federal Reserve System
The Federal Reserve System
Which of the following regulates stocks and bonds law? The Federal Deposit Insurance Corporation The Securities and Exchange Commission The United States Financial Security Association The Federal Reserve System
The Securities and Exchange Commission
When was the National Bank Act created? 1776 1863 1901 1934
1863
Bankruptcy is divided into two common types: liquidation and rehabilitation. True False
True