ECONOMICS
CREDIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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charge a purchase
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obtain a credit card
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pay their debts
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purchase an item because the money was left home
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Detailed explanation-1: -Insolvency is a state of financial distress in which a business or person is unable to pay their bills. It can lead to insolvency proceedings, in which legal action will be taken against the insolvent person or entity, and assets may be liquidated to pay off outstanding debts.
Detailed explanation-2: -Liquidation: a Liquidator is appointed to wind the company up, and its assets are sold to pay outstanding debts. The company is then deregistered and ceases to exist. The most common types of liquidations for insolvent companies are court liquidation and creditors’ voluntary liquidation.
Detailed explanation-3: -What is personal insolvency? Personal insolvency is the term used when a person has liabilities which exceed their assets in an unmanageable way, meaning that as a result an individual cannot pay their debts when they are due.
Detailed explanation-4: -Petition and adjudication.-Subject to the conditions specified in this Act, if a debtor commits an act of insolvency, an insolvency petition may be presented either by a creditor or by the debtor, and the Court may on such petition make an order (hereinafter called an order of adjudication) adjudging him an insolvent.
Detailed explanation-5: -What is insolvency? There are two sorts of insolvency. Balance sheet insolvency is where the company’s liabilities exceed its assets. Cash flow insolvency is where a company cannot pay its debts as they fall due.