This Fraudulent Scheme in Bankruptcy Occurs When a Failing Company

question 50

Multiple Choice

This fraudulent scheme in bankruptcy occurs when a failing company moves its assets to a new business which is thriving after convincing the creditors that they should accept what the new buyer is offering for its debts. After the creditors accept pennies on the dollar for the sold company, they learn that the "new" company was a straw company set up by the principal of the failed business. Identify the fraudulent bankruptcy scheme in discussion.

• A) Skimming
• B) Looting
• C) Bleedout
• D) Bustout

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Definitions:

Age Stereotypes

Preconceived notions and generalized beliefs about individuals or groups based on their age, often resulting in discrimination or biased treatment.

Challenging Jobs

Positions that require a high level of skill or effort and provide a substantial degree of personal satisfaction upon achievement.

Lack Creativity

A situation or condition where there is an absence of originality, innovation, or novel ideas.

Ability Stereotyping

The prejudgment and oversimplification about the capabilities of individuals based on their membership in certain groups, which can influence expectations and opportunities.