Belly Up

### What does the term "belly up" refer to in financial slang? - [x] Bankruptcy - [ ] Rapid growth - [ ] Stable financial health - [ ] Market expansion > **Explanation:** "Belly up" is a slang term used to describe a business or individual that has gone bankrupt or insolvent, reflecting a state of financial failure. ### What imagery does the term "belly up" invoke? - [x] Dead fish floating upside down - [ ] A bird soaring high - [ ] A breaking storm - [ ] A sprouting plant > **Explanation:** The term "belly up" invokes the imagery of a dead fish floating with its belly facing upwards, symbolizing financial demise. ### Which of the following is most likely to use the term "belly up"? - [x] Business news reporting on company bankruptcy - [ ] Marketing campaign for a new product launch - [ ] An IT project milestone report - [ ] Agriculture sector growth report > **Explanation:** "Belly up" is most commonly used in the context of financial reporting to describe a business that has become bankrupt. ### What is the primary difference between insolvency and bankruptcy? - [x] Insolvency is the state of being unable to pay debts, while bankruptcy is a legal declaration of insolvency. - [ ] Insolvency results in business growth, while bankruptcy ends the business. - [ ] Insolvency only applies to individuals, and bankruptcy only to businesses. - [ ] Insolvency is temporary, while bankruptcy is a long-term situation. > **Explanation:** Insolvency is the state of being unable to meet financial obligations, while bankruptcy is the legal process or declaration related to insolvency. ### What does a business likely aim to avoid by declaring bankruptcy? - [x] Liquidation of its assets - [ ] Increasing market share - [ ] Developing a new product line - [ ] Hiring more employees > **Explanation:** By declaring bankruptcy, a business often aims to avoid the forced liquidation of its assets and seeks protection from creditors while attempting to navigate its financial troubles. ### When an individual "goes belly up," what legal process might they engage in? - [x] Filing for personal bankruptcy - [ ] Applying for a mortgage - [ ] Launching an investment portfolio - [ ] Registering a new business > **Explanation:** An individual who goes belly up is likely to engage in the legal process of filing for personal bankruptcy to seek relief from debt. ### Which industry term is synonymous with "belly up"? - [x] Bankrupt - [ ] Quarterly profit - [ ] Financial projection - [ ] Market stability > **Explanation:** The term "bankrupt" is synonymous with "belly up," both indicating financial ruin. ### What does "liquidation" mean in the context of bankruptcy? - [x] Selling off all assets to pay creditors - [ ] Creating new revenue streams - [ ] Merging with another company - [ ] Hiring more employees to save the business > **Explanation:** In the context of bankruptcy, "liquidation" means selling off all of the company's assets to pay its creditors. ### Which of the following can be a consequence of a business going belly up? - [x] Closing operations - [ ] Launching new products - [ ] Entering new markets - [ ] Hiring additional staff > **Explanation:** A business going belly up often leads to closing operations as it becomes unable to meet its financial obligations. ### What is the objective of receivership in financial distress situations? - [x] Managing the company to pay off debts - [ ] Expanding market share - [ ] Increasing investment opportunities - [ ] Stabilizing employment rates > **Explanation:** In financial distress situations, receivership aims to manage the company's assets and operations to help pay off debts and, ideally, restore financial stability.