Jim Salazar Is the Majority Shareholder of XYZ Co

question 19

Multiple Choice

Jim Salazar is the majority shareholder of XYZ Co.XYZ Co.filed for Chapter 11 Bankruptcy on January 1,2008.Which of the following may be considered a fraudulent transfer?

• A)Transfer of land to Jim's sister Alice on July 1, 2006.
• B)Sale of inventory at regular price to a new customer on February 15, 2008.
• C)Transfer of fixed assets to Jim's brother John on December 15, 2007.
• D)Transfer of inventory to a subsidiary for less than fair value on August 1, 2006.
• E)Both a and c are correct.

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Definitions:

Process Consultation

A method used by consultants to help an organization improve its internal processes and dynamics through participatory methods.

Brainstorming

A group creativity technique designed to generate a large number of ideas for the solution of a problem, encouraging open and unrestrained participation.

Grassroots Change

Change that originates from the lower levels of an organization or community rather than from the top leadership.

Incremental Change

Gradual, step-by-step modifications made to improve a system or process over time.