CBI Credit Officer Practice Questions - Central Bank Of India Credit Officer Exam

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What can be inferred from the passage regarding the impact of the Insolvency and Bankruptcy Code (IBC) on promoter behavior?

Promoters are likely to borrow more recklessly because of the ease of liquidation. Promoters will be more proactive in servicing their debt to avoid losing control of their businesses. Promoters will bypass bank loans entirely and rely solely on equity markets. Promoters will focus exclusively on short-term profits to repay loans immediately.

Correct Answer:

Promoters will be more proactive in servicing their debt to avoid losing control of their businesses.

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