Final answer:
Bankruptcy law is the type of law that ensures those affected by a failed business are treated fairly. The process helps to reorganize or liquidate assets of the failed business.
The correct answer is a. bankruptcy.
Step-by-step explanation:
Bankruptcy law is the vehicle for ensuring that those affected by a failed business are treated fairly, reasonably, and in accordance with agreed rules. Bankruptcy is a legal process where individuals or businesses unable to repay their debts can seek relief and protection from their creditors. This process helps to reorganize or liquidate the assets of the failed business in a manner that is fair and follows established rules.
Bankruptcy law provides a legal process for individuals or businesses unable to meet financial obligations to resolve their debts. The United States Constitution allows Congress to enact uniform laws on the subject of bankruptcies, thus ensuring a consistent approach throughout various states. Through bankruptcy proceedings, assets of the debtor are measured and evaluated, and to the extent possible, used to repay a portion of outstanding debt.