Consider statements regarding insolvency and bankruptcy: 1. Bankruptcy is financial state of inability to pay. 2. Insolvency is legal process. 3. Bankruptcy is state, Insolvency is conclusion. 4. IBBI regulates.

1, 2 and 3

2, 3 and 4

Only 4

Only 1 and 2

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BPSC Prelims

2023 • 30 Sep, 2023 • General

Consider statements regarding insolvency and bankruptcy: 1. Bankruptcy is financial state of inability to pay. 2. Insolvency is legal process. 3. Bankruptcy is state, Insolvency is conclusion. 4. IBBI regulates.

Correct Answer

Only 4

Terminology Check: - Insolvency: A financial state where liabilities > assets (Unable to pay). (Statement 1 definition swapped). - Bankruptcy: A legal pro......

💡 Analysis & Explanation

Introduction ▼

Terminology Check

- Insolvency ▼

A financial state where liabilities > assets (Unable to pay). (Statement 1 definition swapped).

- Bankruptcy ▼

A legal proceeding involving a person/business that is unable to repay outstanding debts. (Statement 2 definition swapped).

- Statement 3 ▼

Insolvency is the state; Bankruptcy is the legal conclusion/process. (Incorrect).

Regulator ▼

IBBI regulates proceedings. (Statement 4 Correct).

Answer ▼

Only 4 is correct.

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Consider statements regarding insolvency and bankruptcy: 1. Bankruptcy is financial state of inability to pay. 2. Insolvency is legal process. 3. Bankruptcy is state, Insolvency is conclusion. 4. IBBI regulates.