The Bulk Sales Acts in Place in Some Provinces Are

question 58

Multiple Choice

The bulk sales acts in place in some provinces are designed to do which of the following?

• A) To set minimum statutory standards for goods sold by description in large, unpackaged quantities
• B) To provide relief to commercial purchasers when a ship's cargo is destroyed
• C) To enable commercial debtors to sell their products at a reduced price in order to pay back their creditors in a more timely way
• D) To give priority to creditors who are owed money in respect of inventory sold to the debtor within the last 30 days
• E) To prevent merchants from selling all or almost all of their business's assets before a creditor can take action to stop them

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Definitions:

Income Taxes

Taxes imposed by the government on the income earned by individuals and corporations.

Working Capital

The difference between a company's current assets and current liabilities, indicating the available short-term resources to fund operations.

Income Tax Rate

The percentage of an individual or company's income that is paid to the government as tax.

After-Tax Discount Rate

The discount rate used in capital budgeting that accounts for taxes and reflects the net cost of borrowing and the opportunity cost of investing.