Amanda carries on her business of selling homemade organic soaps and body lotions through a corporation. She

Question:

Amanda carries on her business of selling homemade organic soaps and body lotions through a corporation. She causes the corporation to borrow $2500 in 2015 from a bank, and her good friend Sharon agrees to lend the corporation $5000 in 2016. On top of this, she approaches her uncle to personally lend her $500 for the business. In 2016, the corporation makes an assignment in bankruptcy without paying back any of its debts. What will the creditors be entitled to if there are no other creditors and the corporation’s total assets are $5000? How would the answer be different if the bank had a security interest in all of the corporation’s assets?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  answer-question

Managing the Law The Legal Aspects of Doing Business

ISBN: 978-0133847154

5th edition

Authors: Mitchell McInnes, Ian R. Kerr, J. Anthony VanDuzer

Question Posted: