How Is It Possible for a Business to Reduce and Perhaps

question 17

Multiple Choice

How is it possible for a business to reduce and perhaps transfer the legal risks of bankruptcy associated with all aspects of financing its enterprise?

• A) expert advice and careful review of financing contracts
• B) file for creditor protection
• C) transfer assets into family trusts
• D) declare bankruptcy at the first sign of financial difficulty

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Definitions:

Actus Reus

Guilty act. The commission of a prohibited act is one of the two essential elements required for criminal liability, the other element is the intent to commit a crime.

Mens Rea

Wrongful mental state or intent. A wrongful mental state is a requirement for criminal liability. What constitutes a wrongful mental state varies according to the nature of the crime.

Arson

The criminal act of deliberately setting fire to property, often with the intent to cause damage or harm.

Misdemeanor

A type of criminal offense that is less serious than a felony and typically carries a lighter penalty, such as a fine or short jail time.