A Trustee in Bankruptcy May Avoid Which of the Following

question 89

Multiple Choice

A trustee in bankruptcy may avoid which of the following?

• A) Fraudulent transfers.
• B) Voidable preferences.
• C) Automatic stays.
• D) Both fraudulent transfers and voidable preferences.

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Definitions:

Compound Interest

Calculating interest by considering the base amount of a deposit or loan and adding the interest accrued across preceding periods.

Capital Investment

involves the procurement of funds or physical assets with the anticipation of generating future returns or growth in value.

Net Cash Flows

The difference between a company’s total cash inflows and outflows over a specific period, indicating its ability to generate cash.

Residual Value

Residual value is the estimated amount that an asset will be worth at the end of its useful life.