Use the Fact Situation in Q2 to Answer the Related

question 49

Multiple Choice

Use the fact situation in Q2 to answer the related question that follows. In light of the history of the company prior to its bankruptcy,in determining whether the payment made to the largest supplier is a fraudulent preference,the court will also consider

• A)that this supplier knew that the company was in poor financial condition.
• B)that the payment of this supplier was made within 12 months preceding the bankruptcy of General Widgets.
• C)that the payment of this supplier was made at the time the company was insolvent.
• D)that this supplier was George's friend.
• E)all of the above

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Definitions:

ATC

Average Total Cost, which is the total cost of production (fixed plus variable costs) divided by the quantity of output produced.

AVC

Average Variable Cost, which is the variable cost per unit of output, typically considered in the short run.

AFC

Average Fixed Cost, which is the fixed costs of production divided by the quantity of output produced.

MR

Marginal Revenue, which refers to the additional income generated from selling one more unit of a good or service.