A Liquidator Can Reverse a Transaction Entered into by a Company

question 13

Multiple Choice

A liquidator can reverse a transaction entered into by a company if it is a voidable transaction.However, there will be no obligation on the part of the payee under such a transaction to repay money to the liquidator if the transaction was:

• A)An insolvent and uncommercial transactions.
• B)Made in good faith for valuable consideration when there was no reason to believe the company was insolvent.
• C)An insolvent transaction with a related entity.
• D)An unfair loan.

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Definitions:

Controllable Costs

Expenses that can be managed or influenced by decisions made by a company's management.

Noncontrollable Costs

Costs that cannot be influenced or altered by the actions of a manager or business unit, often determined by external factors.

Variable Costs

Costs that change in proportion to the level of goods or services that a business produces, such as raw materials and labor expenses.

Fixed Costs

Expenses that remain constant for a specific period regardless of changes in the volume of production or services provided.