Ontario Barrister and Solicitor Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Master the Ontario Barrister and Solicitor Exam with our comprehensive practice quiz. Tailored to the latest syllabus, it's the perfect tool to assess your readiness and ensure success.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What bankruptcy options are available for a company unable to meet its debt obligations?

Bankruptcy, proposal, or receivership.
Liquidation or consolidation.
Restructuring or refinancing.
Sell-off or closure.

The correct answer is: Bankruptcy, proposal, or receivership.

There are various types of bankruptcy, but the most common for companies are Chapter 7 and Chapter 11 bankruptcies. Chapter 7, also known as liquidation bankruptcy, involves selling off a company's assets to pay off debts. Chapter 11, on the other hand, allows the company to restructure its debts and continue operations. It is considered a form of proposal and often involves a receivership, where a trustee is appointed to supervise the company's financial affairs. B, C, and D are not typical bankruptcy options and do not accurately reflect the options available to a company unable to meet its debt obligations. Liquidation, consolidation, restructuring, refinancing, sell-off, and closure may all be part of the bankruptcy process, but they are not stand-alone options. Therefore, A is the correct answer.