<span>The goal of giving the debtor a fresh start is accomplished through</span><span> releasing debtors from personal liability for specific debts and protecting them from collection efforts.</span>
She may be entitled to protection under the <u>Business Judgement Rule</u>, which is a doctrine that courts generally defer to the business decisions of company executives when the decisions were in good faith.
Answer:
<u>c. there is the possibility that the funds are used for riskier behavior than the lender agreed to.</u>
Explanation:
True. The term "Moral Hazard" as used in an investment context, often refers to a scenario where one party with a <em>lesser risk burden</em> in a business agreement, <u>deliberately </u>takes investment risk that would be detrimental to others in the agreement who have a higher risk burden.
It is an unethical business practice; a moral hazard, and so acts as a barrier to investors who may want to finance global growth.
