The Bulk Sales Acts in Place in Some Provinces Are

question 18

Multiple Choice

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

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

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Definitions:

Days' Sales

Often part of larger financial metrics, this term by itself is unclear without additional context such as Days' Sales Outstanding (DSO).

Ending Inventory

The final value of goods available for sale at the end of an accounting period, calculated before the start of a new period.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of the materials and labor directly involved in creating the product.

Total Assets

The sum of all current and non-current assets owned by a business, indicating its total resources.