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Hal Jordan purchased Multi-Coloured Lanterns and Rings, a small business from Guy Gardner, a well-established entrepreneur for $350,000, To finance the transaction, he borrowed $250,000

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Hal Jordan purchased "Multi-Coloured Lanterns and Rings", a small business from Guy Gardner, a well-established entrepreneur for $350,000, To finance the transaction, he borrowed $250,000 by way of a mortgage on the premises, and he got the seller to accept a chattel mortgage on the equipment for the balance. Both mortgages were duly registered. He then arranged with the trade suppliers to sell him his inventory on credit. The business was a high-volume, low mark-up type of business. A large amount of money passed through Mr. Jordan's hands each day, even though the portion that represented his profit was small. During the first few months of operation, he purchased a new, expensive motorcycle, refurnished his house, and took his wife on a 15-day holiday to Hawaii, where he spent several thousand dollars visiting the sites. When his suppliers began pressing him for payment of their accounts, he managed to pacify them by staggering payments in such a way that each received the payment of some accounts, but their total indebtedness remained about the same. He accomplished this in part by seeking out other suppliers and persuading them to supply him with goods on credit A few months later, it became apparent to Mr. Jordan's creditors that he was in financial difficulty, and several creditors threatened to institute bankruptcy proceedings. To prevent any action on their part, Mr. Jordan paid their accounts in full. The threats of the creditors brought his desperate financial position forcefully to his attention. however. He promptly transferred $50,000 to his brother, Kyle, and he placed a further $50,000 in a bank account that he opened in another city. A few days later, Mr. Jordan purchased two one-way airline tickets for a flight to Japan that was scheduled for the next week. Before the departure date, a creditor, to whom Mr. Jordan owed a trade account in excess of s15.000, became aware of his plans and instituted bankruptcy proceedings against him. Which of the following is truc? Which of the following is true? a. Hal has committed no acts of Bankruptcy O b. In transferring money to his brother, Hal has committed an act of Bankruptcy Oc. Kyle has committed an Act of Bankruptcy by accepting Hal's money and can be petitioned into Bankruptcy d. Both A&C e. All of the Above f. None of the above

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