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Question 1

The holders of the common stock of a company are sometimes said to have a residual position in the overall financial structure to the business. This is because they:

Question 2

Cindy borrowed money from Lance in order to purchase a new tennis racket. In this relationship, Cindy is referred to as the _________ and Lance is referred to as the _______.

Question 3

The ultimate goal of the bankruptcy laws is to:

Question 4

Bobby has decided that he wants to become a bankruptcy lawyer. Where will he discover the bulk of the bankruptcy law exists?

Question 5

Tess is in serious financial trouble. She has some assets left but does not expect to be able to get her finances back together anytime soon. Additionally, she has certain loans such as some student loans that she is worried about. She decides to file for bankruptcy protection. What is the most likely form of bankruptcy for her to file?