Florida National University Business Questions

1. Question 112.5 PointsThere are many ways to segment a market but not all are effective. List and explain two of the five characteristics of useful market segmentation.
2. Question 212.5 PointsWrite a short essay on why internal controls are necessary
3. Question 312.5 PointsList and describe three types of teams
4. Question 412.5 PointsList at least two leading and two lagging indicators
5. Question 512.5 PointsWrite a short comparison between Chapter 7 and Chapter 13 bankruptcy
6. Question 612.5 PointsExplain the meaning of: “Utilitarianism” and “Rights and Duties” and how they relate to business ethics
7. Question 712.5 PointsDescribe the major differences in preparing the financial statements for a service business and a merchandizing business
8. Question 812.5 PointsWrite a short essay on why government regulations of domestic and international business are necessary.

WHICH SHOULD I USE—CHAPTER 7 OR CHAPTER 13 BANKRUPTCY?

Most people who file for bankruptcy choose to use Chapter 7 if they meet the eligibility requirements. Chapter 7 is a popular choice because, unlike Chapter 13, it doesn’t require filers to pay back a portion of their debts. Learn when Chapter 7 bankruptcy is a better choice than Chapter 13.

Chapter 13 will make more sense if you’re behind on your mortgage and want to keep your house. You can repay the missed payments over time using the Chapter 13 repayment plan. You can also force a creditor to allow you to repay nondischargeable debts, like back taxes or support arrearages, over three to five years. Find out more about when you’d use Chapter 13 bankruptcy instead of Chapter 7.

How Chapter 13 Bankruptcy Works

Chapter 13 is a reorganization bankruptcy designed for debtors with regular income who have enough left over each month to pay back at least a portion of their debts. The amount you’ll repay will depend on how much you earn, the amount and types of debt you owe, and how much property you own.

Typically, Chapter 13 bankruptcy is for debtors who:

• don’t qualify for Chapter 7 but need debt relief to lower credit card payments, stop litigation, prevent a wage garnishment
• have nondischargeable debts such as alimony or child support arrears that they’d like to pay off over three to five years, or
• have fallen behind on a house or car payment and want to get caught up on missed payments and keep the property.

In Chapter 13 bankruptcy, the trustee doesn’t sell your property. However, you must pay creditors an amount equal to the nonexempt property value. In exchange, you pay back all or a portion of your debts through a repayment plan. The amount paid will depend on your income, expenses, and type of debt. Other benefits exist, too, such as the ability to strip wholly unsecured junior liens from your residence.

Chapter 13 Frequently Asked Questions

• How much of my debt will I have to repay if I file for Chapter 13 bankruptcy?
• How long will my repayment plan last if I decide to file for Chapter 13 bankruptcy?
• We’re facing foreclosure. If we file for Chapter 13 bankruptcy, can we keep our home?
• My only income is from retirement benefits. Can I use those to fund a Chapter 13 repayment plan?
• I owe back taxes to the IRS—can Chapter 13 bankruptcy help?

HOW MUCH OF MY DEBT WILL I HAVE TO REPAY IF I FILE FOR CHAPTER 13 BANKRUPTCY?

It will depend on the types of debt you have. Here are the general guidelines:

• Bankruptcy fees. You must pay 100% of the bankruptcy filing fees, trustee commissions, and your bankruptcy attorney’s fees.
• Priority debts. You must pay 100% of the following obligations: child and spousal support arrears owed to the parent or child; most tax debts except those first due at least three years before your bankruptcy filing; wages, salaries, or commissions you owe to employees up to a specific limit; and contributions owed to an employee benefit fund.
• Secured debts. If you want to keep your home, car, or other secured property, you’ll have to pay 100% of the arrearage amount, 100% of debt secured by a tax lien, and remain current on the monthly payment.
• Unsecured nonpriority debts. You’ll pay anywhere between 0% and 100% of the amount you owe, depending on your disposable income, the length of your repayment plan, and the total value of your nonexempt property (you’ll have to pay for it). Learn more about your obligations under a Chapter 13 bankruptcy plan.

HOW LONG WILL MY REPAYMENT PLAN LAST IF I FILE FOR CHAPTER 13 BANKRUPTCY?

If your gross household income exceeds the median yearly income for a household of your size in your state, your plan must last five years—unless you can pay 100% of your unsecured debt in a shorter period. If your income is less than your state’s median yearly income, you can propose a three-year plan. Learn whether you’re eligible for Chapter 13.

WE’RE FACING FORECLOSURE. IF WE FILE FOR CHAPTER 13 BANKRUPTCY, CAN WE KEEP OUR HOME?

Chapter 13 bankruptcy will be a good option if you’re trying to save your home from foreclosure. You can pay off a mortgage “arrearage” (late, unpaid payments) over the length of a three- to five-year repayment plan. For this to work, you’ll need enough income to meet your current mortgage payment while paying off the arrearage and other required debts.

Once you file your Chapter 13 bankruptcy petition, the “automatic stay” stops foreclosure proceedings until your repayment plan is approved (or rejected) by the court. If approved, the mortgage lender must accept payments towards the arrearage over the length of your repayment period. If you make all the required payments and stay current on your regular monthly mortgage payments, you’ll avoid foreclosure and keep your home. Learn more about your home in Chapter 13 bankruptcy.

MY ONLY INCOME IS FROM RETIREMENT BENEFITS. CAN I USE THOSE TO FUND A CHAPTER 13 REPAYMENT PLAN?

An essential part of a Chapter 13 bankruptcy plan is proving to the judge that you have enough reliable income to meet your payment obligations. Courts allow debtors to use income from many sources to fund their plan, retirement benefit income included. Find out if you’re eligible for Chapter 13 bankruptcy.

I OWE BACK TAXES TO THE IRS—CAN CHAPTER 13 BANKRUPTCY HELP?

Yes. Although you must repay 100% of your tax debt (unless it qualifies for discharge because of its age), you can do so over three to five years. Learn about other reasons to use Chapter 13 bankruptcy instead of Chapter 7 bankruptcy.