Which of the Following Would Not Be Considered a Fraudulent

question 36

Multiple Choice

Which of the following would not be considered a fraudulent conveyance or a voidable preference under the provisions of the Code? Immediately prior to filing bankruptcy:

• A) debtor sells assets well below fair market price to Freddie, a friend.
• B) debtor sells his car at a public auction, thinking that it would bring a decent price, but the car brings an amount well below fair market value.
• C) debtor's corporation transfers assets to stockholders in lieu of cash dividends.
• D) debtor pays $650 to "Nation on Line" for the past ten months of Internet service.

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Definitions:

Comparative Advantage

The capability of a person or group to perform a specific economic task with greater efficiency than another.

Microchips

Small electronic components that contain the computing and logic functions of a device or product.

Tires

Rubber coverings placed around the rims of wheels of vehicles and bicycles to provide traction and absorb shocks, essential for the vehicle's performance and safety.

Trade

The act of buying, selling, or exchanging goods and services between people or entities within or across borders.