Which of the Following Could Be Considered an Example of Forced

question 18

Multiple Choice

Which of the following could be considered an example of forced reinvestment if the blockage of funds was expected to be temporary?

• A) vertical reinvestment by an automobile manufacturer to buy parts suppliers and showrooms
• B) a lumber cutting company subsequently builds a paper mill with blocked funds
• C) purchase of local money market instruments and short-term loans
• D) all of the above

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Definitions:

Transfer

Transfer refers to the act of moving ownership, rights, or interest in an asset from one party to another.

Void

Having no legal force or effect; null and unenforceable.

Chapter 7

A bankruptcy process outlined in the United States Bankruptcy Code whereby a debtor's assets are liquidated to pay off creditors.

Bankruptcy

A judicial procedure allowing individuals or companies that cannot pay off their debts to obtain relief from part or all of their financial obligations.