Use the Fact Situation in Q2 to Answer the Related

question 55

Multiple Choice

Use the fact situation in Q2 to answer the related question that follows. Assume that the company was located in Ontario.In order to recover the assets of General Widgets that George transferred to the new company,the trustee in bankruptcy would

• A)ask the court to review the transaction.
• B)ask the court to set aside the transaction as being a settlement.
• C)ask the court to set aside the transaction as being a fraudulent conveyance.
• D)ask the court to nullify the transaction as being a fraudulent preference.
• E)none of the above

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Definitions:

Savings Account

A deposit account held at a bank that provides interest on the funds deposited.

Lump Sum

An individual disbursement occurring at a certain point, in contrast to periodic payments carried out sequentially.

Proceeds

The amount of money received from a sale or transaction.

Interest

The cost of borrowing money, typically expressed as a percentage of the principal, paid by the borrower for the use of lender’s funds.