Karl Mathers Set Up a New Company and Obtained Loans

question 8

Multiple Choice

Karl Mathers set up a new company and obtained loans to buy inventory with the intention of filing for bankruptcy after 2 years and selling the inventory later to a close friend at deep discounts.What is the term for this type of bankruptcy fraud?

• A)Commercial loan fraud
• B)Inventory dumping fraud
• C)Bust-out
• D)None of the above

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Definitions:

Conflict

A situation or process in which there is a disagreement, opposition, or clash between two or more parties.

Cyberbullying

Engaging in harassment or intimidation of a person through sending threatening messages via digital channels.

Forms

Different shapes, structures, or types of something, often referring to documents, methods, or variations that something can take.

Physiological Reactions

Bodily responses to external stimuli, which can include changes in heart rate, hormone levels, or muscle tension.