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Question: 1 / 400

What is a key difference between BIA and CCAA proposals concerning defaults?

CCAA defaults result in higher fines

BIA defaults are more lenient

CCAA defaults do not result in automatic bankruptcy

A key difference between BIA and CCAA proposals concerning defaults is that CCAA defaults do not result in automatic bankruptcy. This means that if a company fails to meet their obligations under a CCAA proposal, they will not automatically be forced into bankruptcy. On the other hand, if a company defaults on a BIA proposal, they will be required to file for bankruptcy. Option A and B are incorrect because they provide irrelevant information about the consequences of defaults, while option D is incorrect because it states there is no difference between the two proposals, which is not true.

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There is no difference between BIA and CCAA proposals

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