Planned Bankruptcies or "Bust-Outs" Always Involve

question 17

Multiple Choice

Planned bankruptcies or "bust-outs" always involve:

• A)Setting up a new company whose purpose is to help the perpetrator carry out the scheme
• B)Intentionally obtaining loans or purchasing inventory on credit and concealing or running away with the proceeds before the creditors are paid
• C)Planning a bankruptcy with the creditors before a loan is made
• D)The perpetrator skipping town when the bankruptcy is filed

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Definitions:

Standard of Care

The degree of prudence and caution required of an individual who is under a duty of care.

Federal Statute

A law enacted by the national government of a federal system that applies throughout the country and supersedes state laws in areas of federal competence.

Duty of Care

A legal obligation imposed on individuals to exercise a reasonable level of care to avoid causing harm to others.

Unusual Bone Disease

A rare or uncommon medical condition affecting the skeletal system, potentially leading to abnormalities or impairments.