Ali Khan has a plan to make his business "judgement proof". He incorporates a holding company called Khanco Ltd., which owns all the shares of a subsidiary; Khanex Inc Khanex operates his business
As Khanex makes profits, they are distributed in full by dividends to Khanco. Khanco then lends the money back to Khanex for purchasing assets, and registers a security interest in those assets. If Khanex runs into financial difficulty, which of the following is true?
A) This is a perfectly legitimate (or at least legal) scheme
B) Khanco's security interests takes priority over the claims of any unsecured creditors of Khanex, even though Khanex is subsidiary to Khanco.
C) Before extending credit to Khanex, its creditors should have checked to see if there were any registered security interests attaching to its assets.
D) Both A and B
E) All of the above
E
You might also like to view...
Given that the third unit took 100 minutes and the rate of learning is 80 percent, how much time will it take to build unit 96?
A) fewer than or equal to 30 minutes B) greater than 30 minutes but fewer than or equal to 35 minutes C) greater than 35 minutes but fewer than or equal to 40 minutes D) greater than 40 minutes
Dominant companies within a supply chain can use their buying power to:
a. Leverage demands for supplier conformance to its supply chain requirements b. Eliminate the need for performance metrics c. Increase organizational productivity d. Motivate customers to change their buying preferences
Compare and contrast "business law" and "business ethics."
What will be an ideal response?
Cross-docking is most closely related to ________.
A. intermodal transportation B. exclusive distribution C. responsive supply chains D. efficient supply chains E. reverse logistics