A Liquidator Can Reverse a Transaction Entered into by a Company

question 1

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:

Economics

The social science that studies how goods and services are produced, distributed, and consumed, and how individuals, businesses, and governments make choices given limited resources.

Institutions

Structures or mechanisms of social order governing the behavior of a set of individuals within a given community, including laws, norms, and organizations.

Society

An organized group of individuals living together in a structured community with shared laws, traditions, and values.

Economizing Problem

The need to make choices about how to best use limited resources to satisfy unlimited wants.