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Use This Fact Situation to Answer the Related Questions That

question 34

Multiple Choice

Use this fact situation to answer the related questions that follow. General Widgets is a large provincial manufacturing company that has been in business for a number of years,but when the economic recession began in 2008,the company found itself experiencing a lack of sales,which affected its ability to pay its suppliers.George is the principal shareholder of the company and has an outstanding shareholders loan of $100 000.00.Between January 2008 and February 2008,the company was managing to pay its creditors,although slowly,and its assets were sufficient to satisfy its indebtedness,but by the end of January 2008 its assets have shrunk well below its debt load.In March 2008,George ensures that the company repays his shareholders loan.Thereafter,in December 2008,the company actively decides to pay only its major creditor,a supplier with whom George is good friends.Also in December 2008,seeing that General Widgets is sinking deeper and deeper into debt,George decides to incorporate a new company into which he transfers $300 000.00 of General Widgets' assets.On March 1,2009,General Widgets makes a voluntary assignment in bankruptcy.
In this case,the fact that between January and February 2008 the company was just managing to pay its creditors probably means that

Definitions:

Cuplike Depression

A cuplike depression refers to a concave or hollowed-out area that resembles the shape of a cup, often found in bone or organ structures.

Femoroacetabular

Pertaining to the femur bone and the acetabulum of the pelvis, often in the context of joint mechanics or disorders.

Talocrural

Talocrural refers to the ankle joint, where the tibia and fibula meet with the talus, facilitating up and down movement of the foot.

Fibrous Connective Tissue

A type of connective tissue that is characterized by a high density of collagen fibers, providing strength and elasticity.