The Best Description of a Fraudulent Transfer in a Bankruptcy

question 41

Multiple Choice

The best description of a fraudulent transfer in a bankruptcy setting is:

• A) A transfer of assets made with the intent of placing them outside the reach of a bankruptcy court
• B) A transfer of cash in exchange for supplies or other business assets
• C) A transfer of assets made to another institution before a bankruptcy is filed
• D) A transfer to a fund or other account to hold assets for a period of time

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Definitions:

Owner's Equity

Owner's equity represents the residual interest in the assets of an entity after deducting liabilities, essentially the net worth of a company.

Withdrawal

The act of taking money out of an account, or the removal of funds from a partnership by a partner for personal use.

Revenues

The full extent of revenue garnered from the commercial activities that are at the core of a company’s operational agenda, particularly through goods or services.

Assets

Resources owned by a company that have economic value and can be used to meet its future obligations.