The federal bankruptcy laws illustrate the folly of do-good : GMAT Critical Reasoning (CR)
Check GMAT Club Decision Tracker for the Latest School Decision Releases https://gmatclub.com/AppTrack

 It is currently 01 Mar 2017, 10:07

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# The federal bankruptcy laws illustrate the folly of do-good

Author Message
TAGS:

### Hide Tags

GMAT Club Legend
Joined: 15 Dec 2003
Posts: 4302
Followers: 40

Kudos [?]: 442 [0], given: 0

The federal bankruptcy laws illustrate the folly of do-good [#permalink]

### Show Tags

12 Jun 2004, 20:07
00:00

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 100% (01:29) wrong based on 3 sessions

### HideShow timer Statistics

The federal bankruptcy laws illustrate the folly of do-good protectionism at its most extreme. At the debtor's own request, the judge will list all of his debts; take what money the debtor has, which will be very little; and divide that small amount among his creditors. Then the judge declares that those debts are thereby satisfied, and the debtor is free from those creditors. Why, a person could take his credit card and buy a car, a stereo, and a new wardrobe and then declare himself bankrupt!t, he will have conned his creditors into giving him all those things for nothing.

Which of the following adages best describes the author's attitude about a bankrupt debtor?
A) "a penny saved is a penny earned"
C) "absolute power corrupts absolutely"
D) "he that governs least govers best"
E) "millions for defense, but not one cent for tribute"
_________________

Best Regards,

Paul

If you have any questions
New!
SVP
Joined: 30 Oct 2003
Posts: 1793
Location: NewJersey USA
Followers: 6

Kudos [?]: 100 [0], given: 0

### Show Tags

12 Jun 2004, 21:20
what a weird CR.

I like (E) but cannot explain it confidently.
Director
Joined: 01 Feb 2003
Posts: 851
Followers: 4

Kudos [?]: 103 [0], given: 0

### Show Tags

13 Jun 2004, 01:21
B is my FA

the author suggests that the debitor does not have any remorse - and infact misutilises the loop hole
Manager
Joined: 01 Jun 2004
Posts: 184
Location: Kiev, Ukraine
Followers: 1

Kudos [?]: 6 [0], given: 0

### Show Tags

13 Jun 2004, 03:56
I think that the answer is C.

The author talks about smth being extreme, and the example he uses is a bit extreme, so I'll choose an adage that's a bit extreme as well.

PS. Can somebody explain, in general terms what does the expression 'you've made your bed, now lay in it' means? I've never heard it before... Just to further my education
_________________

Last edited by SmashingGrace on 13 Jun 2004, 13:20, edited 1 time in total.
Senior Manager
Joined: 05 Feb 2004
Posts: 290
Location: USA
Followers: 1

Kudos [?]: 5 [0], given: 0

### Show Tags

13 Jun 2004, 05:16
C for me too, same reasoning as SmashingG.......!
Senior Manager
Joined: 23 Aug 2003
Posts: 461
Location: In the middle of nowhere
Followers: 1

Kudos [?]: 23 [0], given: 0

### Show Tags

13 Jun 2004, 11:09
I think it should be B...

The author wants the debtor to pay back for all the things he/she buys and not just get away by declaring bankruptcy.

Vivek.
_________________

"Start By Doing What Is Necessary ,Then What Is Possible & Suddenly You Will Realise That You Are Doing The Impossible"

GMAT Club Legend
Joined: 15 Dec 2003
Posts: 4302
Followers: 40

Kudos [?]: 442 [0], given: 0

### Show Tags

13 Jun 2004, 21:11
OA is B
One of the key words here is "folly". Author says government is foolish to limit individuals' debts to their residual asset value in instances of bankruptcy: consumers will load up their debt, go bankrupt and leave very little available assets to creditors. Hence, it is the government's own loss to protect individuals (do-good protectionism).

B says exactly that.
now lie in it (now live with it)
_________________

Best Regards,

Paul

13 Jun 2004, 21:11
Similar topics Replies Last post
Similar
Topics:
9 It has been against the law for federal agencies and federal 14 16 Nov 2007, 18:45
4 Hutonian Government Official: Federal law requires truck 22 01 Oct 2008, 00:15
1 Under current federal law, employers are allowed to offer 8 28 May 2008, 18:52
It has been against the law for federal agencies and federal 0 18 Nov 2007, 04:41
Under current federal law, employers are allowed to offer 0 26 Jul 2007, 15:11
Display posts from previous: Sort by