Ontario Barrister and Solicitor Practice Exam

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

Prepare for the Ontario Barrister and Solicitor Exam with essential study materials, quizzes, and resources. Equip yourself with the knowledge needed to succeed in your legal career!

Start Multiple Choice Practice Test
Start Flash Cards

Practice this question and more.

What is generally the first step in a corporate reorganization under the BIA?

  1. Liquidation of assets

  2. Debt consolidation

  3. Making a proposal to creditors

  4. Selling the company

The correct answer is: Making a proposal to creditors

Making a proposal to creditors is generally the first step in a corporate reorganization under the BIA. This is because a proposal involves negotiating with creditors to come up with a plan for repaying debts and restructuring the company's finances. Liquidation of assets and selling the company may be considered as last resort options if the proposal is not successful. Debt consolidation may also be an option considered in the proposal, but it is not the first step in the process.

More Questions Like This