Use the Fact Situation in Q2 to Answer the Related

question 38

Multiple Choice

Use the fact situation in Q2 to answer the related question that follows. Given the bankruptcy of General Widgets,the incorporation of the new company by George is

• A)a fraudulent assignment.
• B)a reviewable transaction.
• C)a fraudulent preference.
• D)a fraudulent transfer.
• E)none of the above

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Definitions:

Financial Risk

Facing potential financial losses in an investment or entrepreneurial endeavor.

EBIT

Earnings Before Interest and Taxes, a measure of a company's financial performance that excludes interest and income tax expenses.

EPS

Earnings Per Share; a financial ratio indicating the portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of a company's profitability.

ROE

Return on Equity; a measure of financial performance calculated by dividing net income by shareholders' equity.