Question 4
Business UnitsUse the information below to answer questions 3 and 4.
Aboki Plc became insolvent and decided to wind up to meet the legitimate claims of its creditors. Babalawee was called in to manage the dissolution.
Babalawee is
- A.a claimant
- B.a manager
- C.an assessor
- D.a receiver.
Show the answer and explanation
Answer: D (a receiver.)
Explanation
A person appointed to take over and manage an insolvent company's assets for its creditors is a receiver.