BME4-QUIZ#4

Jenny is the owner of a small restaurant called "Food Haven." Due to financial difficulties, she has decided to close down her restaurant and liquidate its assets. She is considering two options: voluntary assignment or liquidation under bankruptcy. Jenny is seeking some guidance on the best course of action. What is the main difference between voluntary assignment and liquidation under bankruptcy?

• In voluntary assignment, the creditors select a trustee, while in liquidation under bankruptcy, the court appoints a trustee.

• Voluntary assignment is an in-court settlement, while liquidation under bankruptcy is an out-of-court settlement.

• Voluntary assignment allows the debtor to begin anew, while liquidation under bankruptcy relieves the creditors of their debts

• Voluntary assignment distributes the assets among creditors, while liquidation under bankruptcy sells the assets and distributes the proceeds.

Which process involves the court dividing the remaining assets of a person or firm among creditors?

• Voluntary agreement

• Assignment

• Liquidation under bankruptcy

• Out-of-court settlement

What is the purpose of liquidation in the food industry?

• To sell the assets of a restaurant and distribute the proceeds.

• To negotiate a settlement with creditors without court involvement.

• To dissolve a firm and cease its existence.

• To relieve the debtor of their financial obligations.

Sarah is a farmer who is considering different loan repayment options for financing her new orchard project. She wants to choose the most suitable repayment program based on her needs. Which repayment program is characterized by equal amounts of principal but unequal installment amounts due to varying interest payments?

• Equal Principal Payments

• Equal Amortization

• Balloon Payment

• Deferred Payment of Principal with Grace Period

Which repayment program involves making equal installments for a number of years and then making a large and final payment at the maturity date?

• Equal Principal Payments

• Equal Amortization

• Balloon Payment

• Deferred Payment of Principal with Grace Period

Which act serves as the legal framework for securities trading in the Philippines?

• Republic Act Number 8799

• Securities and Exchange Act

• Securities Regulation Code (SRC)

• Philippine Securities Law

What are board lots in the context of stock trading?

• The fixed minimum amounts of shares for trading.

• The trading centers of the Philippine Stock Exchange (PSE).

• The legal holidays when stock trading is closed.

• The government regulations regarding stock trading.

At what time does trading of equities begin and end at the Philippine Stock Exchange (PSE)?

• 8:00 a.m. - 3:00 p.m.

• 9:00 a.m. - 12:00 p.m.

• 9:30 a.m. - 12:00 p.m.

• 10:00 a.m. - 4:00 p.m.

Which government agency is responsible for regulating trading in the securities market?

• Department of Finance (DOF)

• Securities and Exchange Commission (SEC)

• Bangko Sentral ng Pilipinas (BSP)

• Philippine Stock Exchange (PSE)

John is a seasoned investor in the food industry and wants to explore different avenues for trading securities related to food companies. He is considering the options of stock exchanges and the over-the-counter (OTC) market.Which market is characterized by dealers who are ready to buy or sell particular securities at certain prices?

• Stock exchange

• Bond market

• Commodity market

• Over-the-Counter (OTC) market