Free Access ACFE.CFE-Law.v2025-08-15.q91 Practice Test (Page 11)

Question 46

Jay files for bankruptcy in order to settle all of his debts. During the bankruptcy proceeding, the court sells off his property and uses the proceeds to pay Jay's creditors, thereby discharging all of Jay's dischargeable debts.
This type of bankruptcy proceeding can BEST be described as:

A.Debt adjustment bankruptcy

B.Liquidation bankruptcy

C.Reorganization bankruptcy

D.Debt dismissal bankruptcy

Question 47

Which of the following statements about civil actions in most jurisdictions is CORRECT?

A.The plaintiff's complaint must typically contain a copy of all documents that might be relevant to the case.

B.Civil actions begin with the filing of a pleading, usually in the jurisdiction where the defendant resides or where the claim originated.

C.The plaintiff's complaint does not need to state the grounds for legal relief.

D.All of the above are correct.

Question 48

Ellis works for a business that filed for bankruptcy. The administrator presiding over the bankruptcy contacts Ellis and requests information regarding his employer's financial affairs Assuming the administrator has all of the powers recommended in the World Bank Principles for Effective Insolvency and Creditor/Debtor Regimes (World Bank Principles) which of the following is TRUE?

A.The administrator may only seek information regarding the bus ness that filed bankruptcy if Ellis consents to providing it.

B.The administrator has no power to obtain the information under any circumstances

C.The administrator may compel Ellis to provide the information despite Ellis's relationship to the business

D.The administrator may not obtain the information unless the business agrees in writing

Question 49

Which of the following is generally NOT one of the goals of deferred prosecution agreements?

A.To reduce the risk of illegal practices at an organization

B.To get an organization to reform its policies

C.To postpone prosecution until a company conducts an extensive internal investigation

D.To allow prosecutors to resolve a case while still punishing malfeasance

Question 50

Which of the following scenarios MOST ACCURATELY represents a suitability violation in a jurisdiction that imposes a suitability requirement on broker-dealers?

A.A broker-dealer is unfamiliar with their client's risk appetite, so they refuse to make any investments on the client's behalf without additional information.

B.A broker-dealer learns about a promising investment and recommends it to their new client without knowing the client's relevant personal and financial information.

C.A broker-dealer makes an extremely conservative recommendation to a client that aligns with their risk profile and financial information.

D.A broker-dealer makes an investment for a client without first obtaining the client's approval to make that specific transaction on their behalf.

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Question 46

Question 47

Question 48

Question 49

Question 50

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