In the Context of Bankruptcy Laws, an 'Unfair Preference' Is

question 33

Multiple Choice

In the context of bankruptcy laws, an 'unfair preference' is:

• A)The payment by a debtor of amounts owed to one creditor at the expense of the other creditors.
• B)A payment of money by the bankrupt to a person with a close connection to the bankrupt individual (e.g.a partner, spouse or child) in the four years prior to bankruptcy.
• C)Any voidable transaction.
• D)A transfer of property or payment to a related entity in the four years prior to bankruptcy.

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Definitions:

Accounts

This term involves the records that summarize transactions affecting the financial position and operating results of a business.

Supervisory Costs

Indirect costs related to the salaries and benefits of supervisory staff within the production process.

Machine Hours

A measure of production activity or volume based on the number of hours machines are operating in the manufacturing process.

Idle Capacity

The portion of a company's resources or assets that are underused or not being used at all, often leading to inefficiency and increased costs.